Agree. I expect those who own this stock like I do invest in it as a struggling electronics firm with good promise of turning the corner and seeing a much higher stock price down the road. I don't want a dividend from a company that is struggling to build a strong future. Control your spending carefully but what you do spend, focus on new products. I don't expect any dividend.
A few years ago, Western Digital was around $30 per share. There were some major temporary turbulence in the disk drive market due to some factories in Asia damaged by storms. But also, magnetic disks were considered outdated technology in light of solid state storage.
Well, the industry recovered from the damaged factories, and people decided, hey, maybe magnetic disks still have a place in today's electronics world.
I sold the stock around 50, as usual, I was way early and should have hung on until 100.
There may be some parallels with KLIC. Everyone figures wirebonding is passe, so nobody likes KLIC. Well, wirebonders are still a cash cow business, are liable to be a big market in electronics for some time to come, and meanwhile KLIC is involved in some of the advanced packaging technologies as well.
I changed my mind and did buy some more today. Just too frigging cheap.
If KLIC buys and drives the price up then I do make money on the shares I already have. Their purchases are essentially equivalent to me buying more stock, because as they shrink the shares outstanding, each existing share is a bigger piece of the company.
KLIC is so dirt cheap right now, they had better do some aggressive buying back of shares.
I was thinking of buying some more shares. But why should I. KLIC should do the buying for me. That's what a company with a mountain of cash and a dirt cheap stock price ought to be doing.
Wow, investors sure confused what to think of UTEK right now. Up as high as the upper 17s upon the quarterly news and now actually down for the day at 15.9x.
In other words the 2.5x would be an adjustment of the company to a more optimistic perception of the company's worth, and the additional kicker would be due to growth.
Wow if I said that that's irrational exuberance. Right now at a enterprise value to gross profits ratio of about 2, if the business does really well they could perhaps get that up to 5x or so. By the business doing well I am thinking 10% per year revenue growth and a decent profit margin. So a couple years down the road if they do well the stock valuation may bump up perhaps to 2.5x of its current level and a couple of years of 10% annual growth would bump that up a bit more to perhaps 3.0x of the current valuation.
So 3x seems plausible, 5x-10x is probably unreasonable unless they come up with a killer new product.
ACLS sold some high energy Purions. Not too earthshaking since they already dominate the high energy segment, and Purion should solidify that further. Still, it's always nice to see good orders reported.
HLIT is a tech company with excellent advanced product offerings into the market it serves. It would be a great investment except for one thing. The management takes far too big a cut of the profits for themselves.
A huge company like this, it's not market manipulation. The company is being valued as a cash cow th a t has dubious growth prospects.