| To many, Atmel remains an undiscovered secret within the technology sector, yet recent exclusive semiconductor manufacturing deals with the likes of Samsung, LG, Kyocera, Nokia, HTC, Hitachi, and Motorola, have begun to spur interest. This is a company that is well positioned both technically and fundamentally in order to reach new 52 week highs as the company reported last Wednesday that its profit more than quadrupled as revenue climbed well beyond analyst estimates. Within the first quarter of 2011, went on to earn $74.6 million, which translates to 16 cents per share in the first three months of the year. That compares very favorably with $16.6 million, or 4 cents per share, in the year-ago quarter. Analysts polled by FactSet expected 15 cents per share in the latest quarter. Revenue also jumped 32 percent to $461.4 million, while analysts were expecting $453.2 million. Atmel also followed that up by announcing a $300 million dollar stock repurchase program due to increasing demand of its chips and touchscreen technology, boosting confidence in its outlook. Despite these amazing results, some investment analysts took the opportunity to slam the stock, which seems like nothing more than an opportunity for longs to load up on more shares. A report on Reuters claimed that Atmel gave a “weak second quarter revenue outlook”, with Capstone Investment analyst Jeff Schreiner writing in a note, “We believe one potential reason for less-than-stellar guidance could be some smartphone shipments occurring during the second half versus prior estimated linear acceleration through out 2011,” Schreiner said. Despite this being far from the truth, the news item dropped the stock to $14 intraday, rocking investors appetites before closing near the $15 mark the next day. This is largely due to the fact that this analyst’s claims have no merit.
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