The best-performing issue was Applied Materials (AMAT, Financial), which added 318 basis points to the NAV, as its share price increased 31.9%* from $45.82 to $60.45. (One basis point is 1/100th of one percent.) The stock’s performance mirrored what happened to the market as a whole. In the first quarter, it dropped 24.9% from $61.04 to $45.82, then in the second quarter, Applied gained back virtually everything it lost in the first quarter. In the March quarterly report, we wrote that Applied was seeing strong growth because of increased manufacturing complexity and the demand for more chips—a demand that should keep growing for years because of increased manufacturing complexity. We indicated that the stock price sank due to concerns around possible disruptions in the supply chain and lower customer spending, but we saw this weakness as temporary, and we were confident of Applied’s future growth. That’s pretty much what happened. The company is one of only two major suppliers of the equipment used in manufacturing semiconductors, so it has a very strong position in the marketplace.
From Jerome Dodson (Trades, Portfolio)'s Parnassus Endeavor Fund (Trades, Portfolio) second-quarter 2020 commentary.
Also check out:- Jerome Dodson Undervalued Stocks
- Jerome Dodson Top Growth Companies
- Jerome Dodson High Yield stocks, and
- Stocks that Jerome Dodson keeps buying
- Parnassus Endeavor Fund Undervalued Stocks
- Parnassus Endeavor Fund Top Growth Companies
- Parnassus Endeavor Fund High Yield stocks, and
- Stocks that Parnassus Endeavor Fund keeps buying
