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Any thoughts on ASML?

Some MFO posters have held stock positions in ASML over the years. It's down about 6% today. Any thoughts on a buying opportunity?



  • edited September 2021
    Still own my ASML. Have not bought any more of it since I bought it at least 10 years ago.

    If you were looking for an initial point, today may be the day. Saw the price hit low-to-mid 800's per share prior to today.

    I was hoping it would split again (it has split four times (97,98, 00 & 12)).
  • edited September 2021
    @TheShadow- Thanks much for the opinion... I just threw 20K at it. Since that will undoubtedly casue a further 85% decrease just remember that you have no one but yourself to blame! :)

    Thanks again-
  • edited September 2021
    I don't think you'll have an issue. It is the leading company in its area in the semiconductor industry. I believe it is one the leaders in the lithography on wafers. With semiconductors having a shortage, there should be strong demand for their product.

    Years ago, JP Morgan had a direct purchase program of ADRs. You could enroll with a minimum investment of $250 plus fees which I subscribed to for ASML. As time has passed, my shares of ASML ended up with Equiniti for safekeeping.
  • Yes, that's the way that I see it also. Back in 2020 I had owned 50 shares, and sold them for what I thought was a decent 5k profit. Totally stupid move. I'm going to stick around this time. Will buy more if it continues downward.

    Thanks again- appreciated your thoughts.
  • Interesting posts. Being an extremely timid investor, I may start my position with 1 share tomorrow !
  • Good luck @Old_Joe. Interesting pick. I'm reading the drop today was due to some of the research houses moving their recommendations from buy to neutral. Who knows why other than the stock looks like it has had a steady trend up. May be time for a rest.

    To your point, I find the getting-out decision harder than the buy. I made a bad sell move on Apple back in 2014-15. It's probably up 500% since. I still play just for the fun of it, but I'm convinced I can't do better than a straight up ETF like QQQ.

    I'm glad to hear you are dipping you toes back into equities!
  • OJ, you'll be fine with this holding. Their technology remains in a good place for global demand.

    ASML competition

    ASML held by ETF's

    5 year chart Down 10.2% this week, so a decent buy time, IMHO, for a company that is not going away any time soon.

    ASML another chart.... click the 200 day icon for other range choices

  • @The Shadow- yes sir, I checked that out before the buy. Thanks again!

    To everyone else- thank you very much for your thoughts and comments. Sitting on cash is driving me nuts, but at 82 with wife not interested in matters financial (other than to hear that everything is OK) I have to be careful here.

    MFO is great. I just love this place and really appreciate the opportunity to listen and talk to so many really neat people.

  • edited September 2021
    SOXL QQQ or Asml could be good for intermediate to long term. Been trading these recently with good gains

    Held QQQ since 2012 very happy with it
    May add more ASML tomorrow/maybe on sale

  • While the semi-annual dividend is not much to write home about especially when a shares trades $700-$800 per share, it does contribute when reinvesting it in additional shares. This is definitely a growth stock with a niche market. My small initial investment in ASML has grown significantly over the years. It is one of my top 7 stock holdings by value.
  • @TheShadow- Bought another 26 shares @ 750. Now have 50, and will buy again if the chance occurs. Tried to automatically reinvest dividends, as I normally do with all holdings, but Schwab says "not allowed" with this particular stock. No big deal, but interesting.

  • @Old_Joe,

    I think I have 14 shares and a fraction in total. I am sure I picked up the 98% of them when I first purchased it with a $250 initial investment. I am sitting on a huge amount of capital gains but I am not going to sell it. I think I will wait until I see a split or huge pullback on it.
  • @Old_Joe: probably no reinvestment of dividends on a "foreign" stock
  • @Ben WP- Yes sir. I was just mildly curious because TheShadow mentioned that his does reinvest. However, he purchased his shares a long time ago, so stuff probably just changed a bit. Thanks-
  • edited September 2021
    Yes, there are dividends which are not much when being paid semi-annually. I re-invest on my shares held by Equiniti (transfer agent). I think last year I received around $42 on 14 shares when the stock was $600-$700 per share. Would have to check with the brokerage about re-investment on the stock,
  • edited November 2021
    Found this excerpt in 11/9/21 WSJ titled, "Semiconductor Industry Isn’t Spending Big on Scarce Old-Tech Chips."

    The article mentions that ASML is the only producer of the industry’s most advanced lithography equipment, is fully booked through the start of 2023.

    ASML closed down $32.20 to $817.85 this evening.
  • @TheShadow- Yes, I also caught that article. That's the main thing that I like re ASML- a very wide moat, plus increasing demand for high-end photolithography equipment. Because of the very high current valuation of ASML I'm thinking that there may be games being played by large investment companies who can arbitrage valuation swings. I certainly don't see any changes in the business fundamentals that would account for selloffs.
  • @Old_Joe: given the run-up in the stock this year, I’m thinking some of those big holders will probably take some profits, thereby depressing the stock temporarily. OTOH, managers who missed out on the performance might window dress at the end of the year.
  • @BenWP- Yes sir, that's what I'm thinking also. I'm not worried about the current swings. If it should happen to drop below my $700/710 entry point I'll just buy a bit more.
  • I bought some AMAT earlier in the week. It’s broken out of a long base.
  • edited November 2021
    It is a unique company with a unique product in a growing segment. Someone may want to look at ASMIY, a Dutch semiconductor company that manufactures and designs semiconductors.
  • ASML

    Ultimate cyclical stock or modern thinking blue chip?


    Baseball Fan
  • edited November 2021
    @PopTart, @The Shadow, @Baseball Fan, @Sven-

    Thanks to all for your interest in this, and taking the time to keep me in the loop. The CNBC article is really a very thorough overview of ASML. I first heard about ASML about a year ago in a similar article in The Economist. Imagine being the "only company in the world" to be able to make a product which is so important to the future of chip making.

    ASML seems to be going through some valuation gyrations at the moment, but I'm going to stay with it.
  • Vanneck semiconductor ETF, SMH, contains the key stocks ranging from semiconductor processing (nanometer-scale lithography) to manufacturing microprocessor chips. ASML is the third holding (7%) of the ETF. This year it has out-paced the tech sector and there is more room to expand in light of the chip shortage worldwide.
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