TSMC - The World's Supreme Chip Fabricator
Companies / Tech Stocks Apr 05, 2022 - 05:42 PM GMTBy: Nadeem_Walayat
TSMC's stock price has been very disappointing as it has not offered any opportunities to accumulate into at its buying levels. Whilst I was tempted to take some profits on the earlier rally to above $140, However I held off doing so because I deemed my exposure to be too light, especially after having reduced my exposure to AMD, so not eager to reduce my exposure further by selling any of TSMC as well. So far we are not getting any of the buying levels, plus this is not an easy stock to buy within a tax free wrapper i.e. you can no longer buy TSM from within an ISA! Which was another reason why I was reluctant to sell given that I hold it within an ISA so once sold I would not be able to buy it back. The alternative is to buy it in a SIPP or outside a tax free wrapper. The stock still carries a high PE of 29 so does need to drop before buying, though pays a 1.5% dividend but unfortunately is not well covered so the dividend may not be reliable..
The script was for the stock to fall to just under $109 and therefore trigger a buy limit at $109. Unfortunately the stock carved out support around $115. The key reason for this relative strength is the fact that the stock has been in a trading range for over a year during which time earnings have been playing catchup, i.e. a year ago the PE ratio at the same price was 40, today it is 1/4 cheaper at 30. So earnings are playing catch up to price, hence why the stock is proving so stubborn in declining despite widespread tech stock panic therefore I am tempted to buy some just under $115 and hold off buying larger at $109 or better whilst waiting for a panic event to delivery $97 or even $81, though neither look likely, perhaps China will do something to nudge the stock price lower.
This article is an excerpt from my recent in-depth analysis that mapped out how low AI tech stocks could trade during the stock market panic of 2022.
Stock Market in the Eye of the Storm, Visualising AI Tech Stocks Buying Levels
Content:
m = f - Everything is Waving!
How to Invest in Stocks 20202 and Beyond
Stock Market Calm In the Eye of the Storm
Stock Market Forward Guidance
50% DRAWDOWNS ARE THE NORM!
Current State of Draw downs
Quantum AI Stocks Portfolio Current
AI Tech Stocks Buying Levels
Earnings Growth Factor
GOOGLE TO BE SLICIED INTO 20 PIECES!
FACBOOK MISSION ACCOMPLISHED Whilst CNBC Clowns Buy the TOP and SELL the BOTTOM!
MICROSOFT Short and Sharp
Still Waiting to Take a BITE out of APPLE
NVIDIA is ARMless - To Buy or Not to Buy, that is the question.
AMD - The Chip Master
TSMC - The World's Supreme Chip Fabricator
AMAZON the Dark Horse!
ARKK SARK SHORT FUND
That was first made available to patrons who support my work.So for immediate first access to ALL of my analysis and trend forecasts then do consider becoming a Patron by supporting my work for just $4 per month. https://www.patreon.com/Nadeem_Walayat.
Also access to my most recent analysis focused on continuing to capitalise on the downward spiral in stock price in response to first Inflation Panic and now added to by War Panic.
World War 3 Phase 1 - Putin WINS Ukraine War!
What Putin Plans for Ukraine
JRS.L Capitalising on Russia's War CRASHED Stocks
THE 2020's INFLATION MONSTER!
Stock Market Trend Forecast Current State
Stock Market FOMO Gives Way to FEAR of Buying the Dip
AI Stocks Portfolio Current State With Updated Buying Levels
FACEBOOK Stock 45% CRASH - Game Over for META?
FACEBOOK RINSE AND REPEAT
INVESTING LESSON - HAVE A PLAN AND THEN EXECUTE IT!
HIGH RISK STOCKS - INVEST AND FORGET
High Risk Stocks Portfolio Revised Buying Levels
GROWTH STOCKS TO CAPITALISE ON THE PANIC OF 2022
1. XXXX - RANK 1 - $121.8, PE 7.8, EGF 38%
2. XXXX - RANK 1 - $58.5, PE 9.9, EGF 30%
3. XXXX- RANK 2 - $16.7, PE 8.7, EGF 33%
4. XXXX - RANK 2 - $89.5, PE 17.2, EGF 23%
5. XXXX - RANK 2 - $49.7 - PE 196, EGF 188%
And gain access to my recent timely analysis lays out how to invest in during the panic of 2022, to be soon followed by scheduled analysis that continues my trend forecast into the end of 2022.
HOW TO SUCCESSFULLY INVEST IN STOCKS During 2022 and Beyond
CONTENTS:
1. UNDERSTAND WHAT INVESTING IS
2. INVEST IN GOOD COMPANIES
3. UNDERSTAND THAT WHICH ONE IS INVESTING IN
4. STOCK PRICES
5. EARNINGS CATCHUP TRADING RANGE TREND PATTERN
6. EMOTIONAL INVESTING
7. MONITORING AND LIMITING EXPOSURE IS MOST IMPORTANT
8. BUY AND SELL on the Basis of VALUATIONS
9. INVESTORS BIGGEST MISTAKE
10. BEST TIME TO BUY STOCKS
11. WORST TIME TO BUY STOCKS
12. BUY VOLATILITY
13. INVESTING TIME
14. FUND MANAGERS
15. OPTIONS
16 . INFLATION
17. INVEST AND FOREGET
AI Tech Stocks Draw down and End of Year 2022 Price Targets
CATHY WOOD ARK GARBAGE
So for immediate first access to ALL of my analysis and trend forecasts then do consider becoming a Patron by supporting my work for just $4 per month. https://www.patreon.com/Nadeem_Walayat.
My analysis schedule includes:
- UK House Prices Trend Analysis, including an update for the US and a quick look at Canada and China - 65% done
- Stock Market Trend Forecast into the End of 2022
- How to Get Rich! - 90% done - This is a good 6 month work in progress nearing completion.
- US Dollar and British Pound analysis
- Gold Price Trend Analysis - 10%
Again for immediate access to all my work do consider becoming a Patron by supporting my work for just $4 per month. https://www.patreon.com/Nadeem_Walayat.
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Your analyst capitalising on stock market panic selling
Nadeem Walayat
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Nadeem Walayat has over 35 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.
Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk
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