Klic's large cash reserve is not being used to generate adequate returns for shareholders. The management is hording cash for selfish reasons. Someone here need to call Carl Icahn or Ackman or Loeb to raid klic management's cookie jar. Extra Cash needs be returned to shareholders through buybacks or dividends. The current amount cash is way more than operating needs plus reserve for the rainy day funds.
Guys, you have lots of stocks to choose from. Simply move on if KLIC isn't to your liking.
Or simply play the cycles.
You're thinking like my ex-wife. If there is cash it must be spent!!!
A better long term view for me has always been hanging on to cash, paying cash for almost everything including the last house, and no car payment since 1981 for new or used vehicles. I can sleep at night without worrying if I've swapped balances form one credit card to the other to take advantage of temporary no interest rates, etc.
There are much worse things than cash. You only get to spend cash one time. After all the missteps from prior mgmt the fact that this bunch is taking their time certainly gains my respect.
If I run across a deal on a car, house, whatever I can act if it makes sense. I don't act simply because I have some cash.
Then again my DD actually involves researching the company and industry at large (I'm not an industry insider) not simply looking at current financials and charts. If you folks do some hindsight DD you'll find some of the ugliest/stupedist/poorest judgements in financing this company(converts) and attempts at diversification(flip chip, gold wire, test, and to me wedge is still an open question). You should be able to uncover enough by going back lets say 5 years to see there current position as a refreshing chance and not to be squandered IMO.
And a dividend IMO is plain stupid. You want a dividend find a large tech company with little to no growth like INTC or MSFT.
Or follow Icahn with AAPL as he announced today.
Personally I hope KLIC remains just as it is. I also hope it doesn't get bought out. That would allow the booking of a one time profit. Instead of booking profits every cycle every few years like I have been doing which are typically doubles and triples. It's doubtful if there was a takeover that it would be double or triple this price.
So IMO just be happy they aren't doing financial engineering.
500 milliion sit in the bank collecting 0.1% annual interest. Klic is only invest a small portion of its capital in profit generating activities. The rest is just the rainy funds to guaranty everyone working for KLIC get a cushy pay package for as long as they remain there.
Amen! The return on equity for KLIC is pathetic. Almost $7 per share in cash is bordering on ludicrous. Management needs to realize that they are not a high tech growth company like they were 20 years ago. They are a capital equipment maker in a mature, cyclical industry and need to be managed as such.
My big fear is that they blow a huge wad on yet another attempt at diversification and it ends up like flip chip, test division, exlam, etc. There is nothing wrong with being a specialized company in a niche market and focusing on being the best of breed. A 40 cent per share annual dividend wold send this stock to $20 with a 2% yield. Maybe even higher than $20 when investors realize management has finally got a clue and won't squander our capital. Until then, the stock will remain the plaything of day traders and short term speculators.
When do the proxy statements come out? Everybody need to check the "with hold for all" box.