Buying the stock at these prices is a no brain er. The risk reward is surely in your favor here. When they talk about smart money, they're talking about the people accumulating this stock. If you could see who's been buy this stock lately, the nervous Nellie would be jumping in with both feet. I'm sure some of the sharpest fund mangers in the industry are accumulating this stock right now. If you're not comfortable buying this stock at these prices then go buy mutual funds because the stock market ain't for you. Or maybe you are one of those people who waits to buy a stock when it hits a 52 week high and the message board is full of THE IBD circus buyng at the top. Bottom line, you buy semiconductors when there out of favor and sell them when everybody loves them. So relax, buy some ZIGO, sit back and enjoy the ride. Sure the stock could go lower and nothing is guaranteed, but at these levels the stock has an excellent chance of eventually moving much higher and you'll be glad you bot some shares at the lows and probably wish you had bot more when the stock was so cheap. In addition, you also have the company watching your back by buying shares every time the stock falls back. And be grateful this management knows a good value when they see it and ain't a bunch of short-timers always selling options with no long term outlook and seeing how much money they can make at the expense of shareholders. So be patient, buy some shares, and don't worry about it because it don't get any easier than this in the market, its when the stock starts moving that it gets harder to figure out.
GreenDog: give us something tangible, not just an overview of the market or of Zygo. You just don't invest because a stock is down or out of favor. Countrywide Financial and other mortgage companies are down but may not be good investments. What is it about Zygo that makes this "easy".
Now I am not saying I disagree with you. What I am saying is that you need to provide some substance as to why you recommend Zygo as a buy. Is it their competitiveness, IP property, new products, opportunities in the medical business, industrial applications outside the semi business? I have bought Zygo, but I don't think this is "easy". They face some tough competitors. I will agree the fundamentals looks good. They are entering some new markets and we just don't know at this time how well they will do. Personally, I am thinking that the upside will come from new medical business. With the new certification, they can now ship systems, rather than just being a "parts supplier".
Metrology faces lots of competition. If you can assure me that their new semi products will succeed, then I might call this easy.
Don't get me wrong. I "feel good" about Zygo too. But I just don't see this as being easy. You must have something concrete to call this a "no brainer" or "easy money", not just that the stock price used to be $18 and is now $11. (CFC used to be $40 and is now about $20.) I want to learn something tangible about their products that says to me they will succeed over the next few years.
ZYGO is like the exact opposite of Countrywide... ZYGO has 0% Debt while Countrywide's extensive borrowings and minimal means to make timely payments of said borrowings has nearly sunk their boat. The punishment fits the crime in Countrywide's case. ZYGO has added nearly $2/Share in Debt-free Book Value to the company's Balance Sheets over the past 2 and 1/2 years by delivering solid earnings only to have a stock that has gone nowhere. This is a case of mispricing by the market.
What I mean by " this is easy" is that based on price its easy. Price is what makes you money or loses you money. Hell, you could find the greatest company in the world doing everything right and the stock price would reflect that and you would be buying a company with high expectations and what would appear as a good stock to buy might lose you a good sum of money. Substance means absolutely nothing in the world of investing when it comes to price. Let's take Apple - Ipod - owns the space, Imac gaining market share and will continue to gain market share especially with the Leopard release in the fall. IPHONE - high margins etc., but are you comfortable buying the shares at the current price when a lot of good news is priced into the stock. Would you feel comfortable loading up on the stock, I doubt it, all it takes in technology is someone to build a better mouse trap like a google phone etc. So my point isn't about substance it's all based on price, book value, company's outlook, insider sales, etc. Price drives when I buy a stock, the company has told you that their company is cheap by saying their going to buy 25 million dollars worth of shares, they also said that some of their markets are looking good. So I'll take the price, the low market expecatations, and the way management projects things, and buy their stock. Expectations are non existence here, where's apple's expectation are in the stratosphere (not good if something goes wrong), if things don't work out as planned here, then the stock is not falling off the cliff. I could give all the substance in the world and it wouldn't mean a hill of beans, but the company has told you that it's a good time to buy it's stock by announcing that it will be buying back its own shares and at these prices it sure makes sense. Nothing is easy, but you usually know when you're getting a good deal when an item is put on sale.