Looks like the dip may be over. I think next year will be big - the fruits of the investments they are making now will begin to show. They are opening the biggest additive manufacturing facility - partnering with Materialise - in Southeast Asia next year. Materialise is one of the best 3D operators out there and if the 3D thing really takes off UCTT will be along for the ride. That facility can go a long way toward diversification away from the semiconductor space, and is not even close to being reflected in the stock price right now. Hold on for a year or 2 - no reason the stock can't see double digits again.
Not that I pay much attention to analysts since in general they are wrong as much as they are right, but it is one more tool in the box to look at when evaluating an investment. The new consensus is $9.25 with a high target of $11 and low of $8. The $8 certainly seems more than doable since it was there just a few short weeks ago. Every business in history has experienced lumpy quarters, since "stuff happens" in real life and managing a business quarter-by-quarter is just stupid anyway. You have to make decisions for the long-term health of the company and these guys seem to be doing that. I like buying solid companies that have experienced these crazy drops due to the quarterly earnings madness. I don't see anything here that indicates any serious problems with the overall business conditions or future outlook - on the contrary the future looks good indeed. Seriously cheap under most fundamental measurements and even the analysts' most pessimistic target is 44% upside from here after this earnings hiccup. I take these gifts whenever the market is silly enough to serve them up.
I've been buying. Seems way cheap to me at these levels. Down 20 % just because Needham opined Q1 may not be great. Overall semi sector doing ok and lots of future catalysts for the company. They will soon be opening the biggest additive manufacturing facility in SE Asia, which makes them a serious player in 3D. Almost every 3D stock has moved up nicely the past few weeks and UCTT heads down? Stupid. May not be the absolute bottom here but I can't see any serious justification for the stock price decline. Buying and holding here - the stock will see double digits again easily with some patience.