No one needs to tell us shareholders BRKS has been an awful investment. But how best to quantify just how stinking awful it is? There are numberous metrics, but my favorite is sales to market cap, as it shows current Wall St. sentiment. By this standard, BRKS's shortcomings are readily apparent. Compared to the 9 companies BRKS uses as a peer group for compensation purposes, the numbers are reflective:
Before we breathe a sigh of relief that BRKS has beaten at least one of these nine (UCTT) bear in mind that UCTT's shareholder return the last 5 years is 10X that of BRKS! In short, as an investment BRKS stinks. Now that Lepofsky has canned the senior management and taken the helm himself, maybe things will get turned around. I suspect he rues the day he agreed (with others) to sell Helix to BRKS, just in time for the backdating scandal to hit, thereby exposing what corrupt venal sleazoids the former management and Board were. So where does that leave us today? Is Brooks a "buy" at $9.50? History says yes, although it's hard to drum up much enthusiasm for it. For me, the indignation has subsided yet.
Welcome aboard, it's nice to have a fellow poster with something constructive to add. A rare commodity these days. I too hope Lepofsky can get this company turned around. But then he has a long way to go to redeem himself in my eyes. As a former shareholder in Helix, I don't recall we share- holders being asked if selling out to BRKS is something we approved. It was instead presented as a fait accompli. Nor do I remember any explanation as to why the Board felt Helix's future was so dismal as a stand-alone that being absorbed by BRKS was so necessary. The final indignity was that we Helix owners didn't get a price premium, instead swapping shares at the current market value. It now seems to me that as an independent company, Helix's future was in its own hands, as it was free to leverage its expertise to expand in other markets, but now inside BRKS its fate is tied to the semi-equipment market, with the perpetual boom and bust cycles. And to think I could have dumped those Helix shares at $80! What a moron I was.