Tuesday, March 1, 2011

Mattson Technology, Inc. (NASDAQ: MTSN) Q2 2011 Price Target

Recent price: 2.57$
P/E Ratio: -
3 Months Target Price: 3.30$

Company Description
As their investors relations website states, Mattson Technology, Inc. designs, manufactures, and markets semiconductor wafer processing equipment used in the fabrication of integrated circuits. The Company is a leading supplier of dry strip and rapid thermal processing equipment to the global semiconductor industry. Its strip and RTP equipment utilize innovative technology to deliver advanced processing performance and productivity gains to semiconductor manufacturers worldwide for the fabrication of current- and next-generation devices. Mattson is expanding into the etch market with innovative products targeting high volume dielectric etch applications, and is also expanding into the millisecond annealing and thermal oxidation markets. The Company expects that entry into these new markets will enhance its technical leadership and deliver revenue and profitability gains.

Confidence Margins
Strong resistance $4.52 (+76%)
Light resistance $3.32 (+29%)
Light support $2.31 (-10%)
Strong support $1.93 (-25%)

The company recently provided a quite poor revenue outlook to analysts for the fiscal year 2011. This caused the share to plunge to unprecedented levels. At current prices, this is certainly a great entry point in the stock.

Entry strategy
For the cautious investor:
Buy the stock for 7.25$ or less but stay informed for coming developments and most importantly, the light support if the stock comes to pass across it.

For the risk-taking trader:
A position in the June 2011 2.50$ call option will yield a satisfactory return to investors, they can be acquired for about 75$ per contract.

Exit Strategy
For the cautious investor:
Sell when the stock reaches 3.30$, or keep it until 4.50$ if you are more bullish in your own analysis.

For the risk-taking trader:
The contracts should be kept until the underlying reaches around 3.30$, 4.50 if you are more bullish. This should provide a very interesting return if the underlying reaches the target price as the contracts will get deeper in the money.

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