I just wonder what is going to happen to GTAT's technology. They have some awesome stuff. If someone can buy that in a fire sale, then they are someone you might want to invest in.
Would love to see 10. I stupidly failed to own INFN stock when it made the jump from 9 to 13. I can't see buying it at current price but if it goes back to 9-10 I will look forward to the opportunity for a doover.
Would "wet plant" refer to the installation of the fiber into the subsea corridor?
further stretch the value and lifetime of the wet plant
Could someone who knows this technology explain what a "wet plant" is?
Seems like a good price at about $1 per dollar of annual revenue. KLIC itself has a market cap more like $1.50 per dollar of revenue, although if you back out cash it is more like 80 cents or so.
At any rate, it does not appear that they paid a big premium for the company. Perhaps they were not able to command a sky high price because KLIC is perhaps about the only company where they are a good fit as an acqisition.
Seems to me people aren't getting the oil price slump. These stocks should be way lower. If low oil and gas prices are sustained for a long time, and I see no reason why they won't, many of these companies will go belly up.
If there is a way to play the oil market, I believe the prudent course is to wait for the bloodletting, and then look for newly constituted or consolidated oil companies with strong balance sheets and stock prices still reflecting the dismal prices for oil and gas.
When GTAT blew up, my main question is, what happens to their valuable technology? These guys have some incredible stuff. Financially they are toast, but I imagine someone is going to buy their intellectual property. That someone could make out like a bandit. Or will they try to issue new stock after bankruptcy in order to attempt a do over?
Yeah, buy and hold would appear to be long gone. Of course, commodities are a sector where buy and hold was least applicable to begin with since commodity prices are inherently very volatile, unlike prices for most goods and services.
Ironically, even though the tech crash of 2000 and the economy crash of 2008 led me to the conclusion that buy and hold is a relic of the distant past, those stocks I happen to have right now are ones I am kind of viewing as buy and hold. They are tech stocks in the semiconductor equipment business. They have very strong balance sheets, with a lot of net cash on the balance sheet as opposed to debt. (ones I have- KLIC, RTEC, TER, ULTK) The semi business is cyclical, but so long as they have strong balance sheets they should be able to ride out the down cycles. So I am actually thinking they may be good stocks to hold for many years, I figure over many years they ought to show average annual gains of 10% or so.
Yahoo shows these guys market cap about 600k. That has got to be wrong? Less than 1 million dollar market cap. That would be a valuation if you are at 11:59:59 of the bankruptcy doomsday clock. Must be an arithmetic error.
My mouse clicking finger is starting to twitch.
Wonder how realistic the projected PE yahoo shows of about 6 for UPL is?
Guess I'll get on their web site and see when the latest presentation was made. I am curious if their costs are so low they can be profitable even in the face of sustained low prices and hedges gradually fading out.
Looked at their numbers a little closer. First of all Yahoo shows their enterprise value something like 260-270 mil but it looks to me more like 240 mil. Yahoo sometimes gets those wrong, although in this case the apparent discrepancy is fairly modest.
And they appear to run about 50% gross margins. And the projected revenue next year that Yahoo shows is over 200 mil.
So if they make revenue of 200 mil at 50% gross margin then their annual gross profits will be 100 mil.
And that means their enterprise to projected gross profits ratio is about 2.5. And that's not bad at all. I consider an EV/GP ratio on a tech company of 1 to be dirt cheap, 2 to be cheap, and 3 to be a decent value if it is a company with decent growth prospects. So 2.5 is not bad.
And in today's volatile markets I prefer tech stocks that have very good balance sheets. And with half or so of their market cap in cash or cash equivalents, these guys certainly have a strong balance sheet.
I will kind of be hoping the stock goes lower so I can buy more shares cheap. I would definitely scarf some more down if this dips to 15.
When I used to own/follow DVN it held a very small amount of debt compared to most oil/gas companies. I see now they have about 9 billion net debt with a market cap of 22 billion. Now that is not as heavy of debt as some oil and gas co's but it is a lot more than they used to carry. What is that all about? I presume they got aggressive in either buying up new properties or in developing properties they already had, perhaps largely targeted at trying to make liquids a larger percentage of their production?
Anyway, that makes DVN not quite as attractive to me as an investment as it once was.