If they had cash of 800 mil and debt of 200 mil leading to a net cash of 600 mil, then I would be concerned.
300k of interest obviously represents a very small amount of debt. Whether it involves debt as some sort of lubricant during the product sales to delivery process or whether it is some small debt they have just not bothered to retire, it is too small to matter.
Anyone familiar with who are the niche players in advanced packaging that have the "compementary technologies" that Bruno indicated are what KLIC would be interested in obtaining through an acquisition?
You'd thnk Barrons would do an article one of these weeks touting how cheap KLIC is. But Barrons usually touts value stocks only after they have already gone up a bunch. Maybe once KLIC reaches $20-25 per share, Barrons will "discover" what a value it is and do an article about it.
I just wonder why the heck the investment community values this stock so low. The only rationale I can think of is that they consider it a low tech business that will gradually be overtaken by higher tech competitors.
A perception I happen to believe is dead wrong.
I haven't checked their previous quarterly, but at first glance those numbers look darn optimistic. Hope you're right.
Where are those numbers from? I don't see a quarterly news release. I would think it would be after trading today or first thing in the morning just prior to the conference call?
Posted a message but I don't see it here.
I thought TER would get massacred today, since it looked to me like off hours it was down around 16.2. Anyway, glad it didn't get hammered too badly.
This is a great company and any hiccups are in my opinion bound to be temporary.
I would imagine a lot of the Q and A will be: How come the dismal outlook for next quarter?
Opened in high 18.xx. Looking at off hours price I thought it was going to be around 16.20 or so.
Just goes to show, a company with a great business and excellent balance sheet can have some depressing news and not necessarily get whacked too badly on stock price.
Enterprise value to gross profits ratio about 7, AFTER today's drop. Yahoo shows estimated growth rate going forward of 8%.
Without even reading their report yet, it doesn't seem very surprising to me this stock dropped. There are a lot of tech stocks sporting EV/GP ratios of 3-4 with projected growth rates going forward of about 10%.
By that standard, XLNX looks quite expensive.
INFN clearly has some leading edge technology. And they have a good balance sheet.
However, it appears that does not necessarily make them the winner in this market. CIEN seems to be getting a lot of business lately and even though they lack INFN's pic technology, their expertise in packet switching seems to allow them to provide something pretty competitive at the systems level. On the other hand, their balance sheet is not very good for a tech company so I can't see owning CIEN.
Another thing that concerns me somewhat is I don't see a steady stream of new customer news announcements like we were seeing a year or so ago.
Bottom line, while INFN's technology appears to be very impressive, not all the evidence seems to support INFN necessarily being a winner.
I am an adherent of the Jesse Jackson school of investing: "When in doubt, get out."
So I sold my INFN. Now that probably means it will skyrocket, since the stocks I was right on the borderline as to whether to own and decided not to have shot up, while the ones I have stuck with have just plodded along.
But I have to go with what seems to make sense based on the pros and cons. If they show a disappointing quarter and the stock drops a bunch, then I might decide the reward to risk ratio is more attractive once again and I might get back in. If they show a good quarter and the stock goes up, then I will figure the horse is out of the barn and I will need to look for the diamonds in the rough that have not yet been recognized.
They've got excellent products, but if they lack critical mass business-wise, then semiconductor manufacturers are not going to trust that the company will be around for the long haul, and will consider it too risky to buy their products.