Yes, from what they said at the conference call, it sounds like it is most emphatically a one quarter only problem.
Well yes if the end market slows then it trickles back to the eqt suppliers. But this is an occupational hazard of the entire semi eqt industry, it's not anything unique to Kulicke. The main thing you want to handle the volatility of the semi eqt business is a strong balance sheet. And KLIC's is the strongest I am aware of in the entire semi eqt sector.
Not just Roth, in a regular IRA there's no need to worry about tax implications. Trade in and out or long term is immaterial since it's all taxed at regular tax rates. And in an IRA, whether Roth or regular, you don't have to worry about all that capital gains documentation in your 1040.
Some years back I stopped trading any stocks in my regular brokerage account and since then only trade in my IRA (regular and Roth). To me the number one benefit of this is not having to do the paperwork on your Schedule D. When I use to trade in my regular account I would have like 10-15 pages of Excel spreadsheet documenting my capital gains and losses. I had to keep it update on an ongoing basis and then I had to reconcile the totals before submitting my tax forms. I'm sure glad not to have to deal with that accounting drudgery anymore.
That wouldn't be so bad. This company is so up to its gills in cash, if the stock dropped it would be a golden oppportunity for the company to scarf down some cheap shares and then the long-term upside would be huge.
If GTAT's remaining hope is the claim that their contract is unenforceable because they were idiots to sign it then that is pretty thin soup to hang your hopes on.
Their quarterly looked decent, aside from the GTAT quagmire. I like these guys' business. As far as I can ascertain these guys make stuff that is essential to leading-edge semiconductor manufacturing, but not stuff that individual equipment makers are going to want to develop in-house.
The conference call certainly seemed to indicate that- vendors are going toward more outsourcing rather than less. It makes sense. Vendors are going to want to put their R&D into the proprietary technologies that they have that differentiate their products from those of their competitors.
As a value investor, I am a borderline buy on this one at this point. If it's down 7% tomorrow like it is after hours I may start buying some shares.
I like the fact that they have a decent balance sheet. Companies in the semi eqt business you always hope to see with balance sheets built like a tank considering the severe cycles that semi eqt goes through. These guys don't have that, but they do have some net cash and the semi eqt cycle is supposed to be entering an upswing.
Another good thing about going to the bank is that those tellers are awfully lonely. You go into any local bank and there tend to be about three tellers that look bored to tears and all pounce on you at once to be the one to have the opportunity to relieve their boredom by doing a transaction for a customer.
How in this day of age of relentless cost cutting in the business world can banks have people sitting around doing nothing all day? I think the answer is that banking is not a real business.
These guys look cheap on PE ratio. But I guess it's concerns about earnings that led to today's drop?
Based on enterprise value to gross profits ratio of almost 6, they do not look cheap. Even if they maintained a single digit PE ratio, not sure what the significance would be. It would take many years of earnings to pay off their debt. There are tech companies out there with tons of net cash relative to market cap.
I really don't see why anyone would want to invest in this company.
This will teach Buffett to not invest in businesses he does not understand.
Since ALU is a weak player in the markets it serves, if its competitors are sounding sour notes you can expect business is not very good for ALU.
Could you provide some metrics that lead you to the conclusion that they got it cheap? It sounds darn expensive to me.
I guess all the dilution took place during today's trading of SWN stock, so the dilution is now baked into the cake.
RE: "Apple holds first lien on those furnaces." - contrarian2001
Do they, really? Only on paper.
So GTAT can round up some armed vigilantes to protect the furnaces from being foreclosed by the county Sheriff?