5-Star Stocks Poised to Pop: FormFactor

By Brian D. Pacampara

updated 5:02 a.m. ET Nov. 9, 2009

Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, chip-testing equipment maker FormFactor (Nasdaq: FORM) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at FormFactor's business and see what CAPS investors are saying about the stock right now.

FormFactor facts

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 98% of the 1,118 members who have rated FormFactor believe the stock will outperform the S&P 500 going forward. These bulls include fundamentalsrock and All-Star Gtrinvestor, who is ranked in the top 0.05% of our community.

Just last week, fundamentalsrock strongly advised Fools to stay true to FormFactor:

The movement to DDR3 will, eventually, make [FormFactor] a superstar. In the meantime, it is a [Motley Fool] Hidden Gems selection, has great management, and has had no disappointments. Its stock has tanked recently for no good reason, so it's time to buy!

In an earlier pitch, CREWatcher  chipped in with a list of several captivating catalysts:

- Apple (Nasdaq: AAPL) is highly likely to bring another cool new game changing gadget to market that will add demand for more small DRAM, flash, and logic chips.
- Solid state hard drives based on flash seem to be taking a piece of the hard drive market, starting with laptops, and will increase the demand for flash chips.
- Vista flopped, creating extra pent up demand for Windows 7, and setting up the October launch of Windows 7 to trigger a bigger than usual upgrade cycle.
- Chip makers have held off on equipment upgrades during a nearly 2 year down cycle in their market, leaving a lot of aging test equipment ripe for replacement.

What do you think about FormFactor, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!  

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