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MEMSİC, AŞ Message Board

  • micorcapinvestor micorcapinvestor Jun 8, 2012 9:45 AM Flag

    Gas flow sensor - innovation coming

    Over the last week, I loaded up on MEMS. The valuation was very cheap, with 40m in net cash, you are effectively buying this company valued at $14 million. There cash flos is neutral to positive, so no immediate worries about cash burning.
    What most excites me is their new line of gas flow sensors. This is a potentially disruptive technology with high margins. Tie it in with MEMS wireless sensors, and you have a great gas meter solution. I see this company easily doubling in value in the next few months. My target is a five bagger.
    My only concerns is the consumer smartphone segment which MEMS is in: this segment tends to get commoditized and margins hammered. If MEMS can differentiate their technology in this segmet, they will do fine.

    any followers here? Let talk...

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    • You're totally right but inside traders rule this and make it unproductive. Yore five could be waiting months for another purchase from zhao. I just don't see no company evaluations. Go long and hold. I like the stock but won't buy it until I see it break the support level of 1.89.

      • 1 Reply to jazzylawnservice
      • Management execution has been poor ever since they went public several years ago There's been one setback after another the most recent being the loss of their major customer for their magnetic compass. They have also been disappointing constantly before that which they always blame on pricing pressures.

        I got out a long time ago at $3.70 when the one big institution that was buying caused the stock to briefly pop, the stock collapsed after that, then shot up over $5 briefly when they got an upgrade based mostly on their compass business and then plunged back down in the $2's again now with the loss of orders from the big compass customer. It may not be until the 4th quarter they can recapture some business there.

        They've been talking about the gas meter for a long time now and I don't know if it will make a big difference or not. I believe they were aiming it at China and again I don't know what the result will be. Until I see something more solid and sustainable I'll watch from the sidelines.

    • Also, the market float on this company is so small that it is not getting any institutional investors. This keeps it off the radar, and gives small investors a great buying point.