I can't buy all the shares, but I did pick up a few more today at 2.50. I just reread the CC transcript and this statement below stands out. Sounds like they see their total addressable market (TAM) as about $500 million annually. Does a substantial share of this market equal 20% or even more. 20% would be $100M per year and if AEHR was valued at even 1 times sales, that would be $8 or $9 per share. Pick your numbers and multiplier I guess, but if they can pull it off that would be nice. Still, we could see priced drift lower as we wait. Will be interesting to see if any other buyers step in.
With the addition of these new emerging markets and use cases, we’re adding more than $300 million annually to our existing $200 million total available market. We believe that the significant competitive advantages we’ve with our new product offerings give us the ability to gain a substantial share of this increased market and will allow us to grow our revenue substantially in the future.
Not much trading for sure. There are only 6.5 million shares outstanding and per Yahoo, about 80% of those are held by institutions, mutual funds, and insiders. That leaves only about a million shares available for trading and many of those are held by longer term investors (like me) that are holding for much higher prices. Makes it hard for any investor or fund that wants to pick up more than 1,000 shares.
Excerpt from another positive article on Hurco:
Hurco: The Growth Story Is Far From Over
Jan. 12, 2015 1:06 PM ET | About: Hurco Companies, Inc. (HURC)
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. (More...)
•Hurco announced another year of double-digit growth in revenues as well as new orders.
•The company's performance is finally approaching pre-recession levels.
•Having a strong cash position and no debt creates a cushion of safety for investors.
•This company deserves a higher valuation.
Saw NXP Semi mentioned in Barron's this week regarding their automotive products. (NXPI)
NXP has even more significant usages in its sight beyond wireless thermometers. The company is helping to develop wireless technology that will tell drivers when a driver three cars ahead of them has suddenly hit the brakes, thus reducing collisions.
Monday 12 January 2015 | 18:02 CET | News
Microwave networking services company, Aviat Networks has reached an agreement with Steel Partners Holdings and Lone Star Value Management, related to Aviat's fiscal 2014 Annual Meeting of Stockholders. Under the agreement, effective 11 January, Aviat appointed James R. Henderson, John Mutch, Robert G. Pearse and John Quicke to its board of directors. Also effective 11 January, Clifford H. Higgerson, Raghavendra Rau, Mohsen Sohi and Edward F. Thompson retired from the board. Messrs. Henderson, Mutch, Pearse and Quicke will each be included in Aviat's slate of director nominees for election at the 2014 Annual Meeting along with four of Aviat's current directors, Chuck Kissner, William A. Hasler, Michael A Pangia and Dr. James Stoffel.
You can probably google for this title:
Orders, Revenue, And Margins Continue To Expand At Hurco
Excerpt from article:
Can Hurco Deliver Back-To-Back Double-Digit Growth?
Given that Hurco's recent revenue results have been close to my estimates, I'm not making any big changes here. I've goosed up my FY 2015 revenue forecast by half a percent to just under 10% and I'm certainly hopeful that the company can deliver back-to-back years of double-digit growth. I have made upward adjustments to gross margin and operating margin, though, and have also tweaked the capex and depreciation expectations. The resulting changes aren't enormous, but they do add about 3% to 5% to the annual FCF figures for the next five years.
The Bottom Line
Those adjustments to the FCF estimates don't sound like a lot, but they do add up. So much so, in fact, that my fair value goes up about 10% to just under $47. Net cash on the balance sheet is more than 16% of that value. I'm absolutely okay with Hurco keeping cash on hand to help it withstand the next cyclical downturn, but I nevertheless see an opportunity for management to improve its dividend and/or consider strategic acquisitions.
I assume that the market is adjusting the price down assuming that Adler Tanks is suffering with the drop in crude oil prices. Hard to say whether the rest of the business can compensate for a decline in tank rentals that have been used for fracking.
Yes, looks like Hurco is finally starting to roll. Would love to see AEHR start reporting good revenues and earnings one of these days. May not be that far away.
So, what do we expect for FY 2015? Revenues of $250 million and earnings of $3.25 is my guess. Should be enough for $45 to $50 per share. If the world economy ever takes off, they could beat that also.
One thing that may have impacted the current quarter is probably the Cypress-Spansion merger. I would think Spansion would have kept purchases to a minimum while those negotiations were ongoing.
It's never as easy as you hope I guess. Seems like the big news is just on the horizon. I agree though, starting to ship the FOX-1P would be wonderful. I also like the sound of having several 1P system orders in the backlog. Will be interesting to see if they give any guidance on the XP development. Keep thinking I will wake up some morning and see the share price has doubled, but not yet. Feels like a small biotech waiting for signs of efficacy in P1 or P2 trials.
Crazy machines. Well, I raised my bid 3 or 4 times, up to $2.35. The computers followed me up each time. Finally, some other real bids came in about 11 AM at $2.69 per share. So, I pulled my bargain bids for the day.
Looks like everyone has placed their bets and are just waiting for the report. I put a bid in for 10K at $2.20 this morning in case someone is desperate to sell or makes a mistake and enters a market order. Yesterday, the bid stayed low for an hour or two before moving up to $2.75 or so later in the day.
If Yahoo lets me include this link, you can read an interesting letter from IEC management that talks about the poor performance of API.
Well, they warned us that we had another quarter or two of weak revenues coming up, so my guess is for $3.5 to $4 million on revenues and another small loss, maybe 5 or 7 cents. Guess one of the good things should be the improvement to the balance sheet following the share sale that happened just before the quarter ended. Last quarter had A/P larger than A/R by about $1 million and I will guess that will not be the case this Q. So my guess for cash at the end of Q2 is $3.3M, up from $2.1M at the end of Q1. It sure would be nice to see that much anticipated order for a couple of Fox-1P systems.
OK, here is another one. Still, I think we need more than one per month.
ORLANDO, Fla., Jan. 6, 2015 /PRNewswire/ -- API Technologies Corp. (ATNY) ("API" or the "Company"), a leading provider of high performance RF, microwave, millimeterwave, power, and security solutions, today announced that it has received a new, $7.3 million order to produce electronic products in support of U.S. Department of Defense C4ISR (command, control, communications, computers, intelligence, surveillance, and reconnaissance) initiatives. The order was placed by a U.S. Department of Defense prime contractor with deliveries scheduled over the next six months.
From today's WSJ:
Nvidia saNVDA +0.05%ys its latest mobile processor offers the same performance as a room-sized supercomputer. But the target the company is stressing is the car, not the smartphone.
The Silicon Valley chip maker announced its new Tegra X1 Sunday night, as the Consumer Electronics Show in Las Vegas kicked off. Nvidia said the Tegra X1 can carry out more than a trillion operations per second while drawing little electrical power. It didn’t stop there; Nvidia also unveiled two specialized automotive computers powered by the new chip.
Jen-Hsun Huang, Nvidia’s CEO, said such devices will be essential to allow cars to see their surroundings, provide warnings to driver and ultimately drive themselves.
“There will be more computing horsepower inside a car than anything you have today,” Huang said at a CES press event.
Nvidia up to now has been best known for chips called GPUs, for graphics processing units, that render images in videogames. That same kind of circuitry, however, has increasingly been used for other kinds of scientific computing tasks.
The Tegra X1, besides the company’s Maxwell GPU, has eight standard processors based on designs licensed by ARM Holdings. It will begin appearing in the first half of the year, Nvidia said.
One of the car computers that uses the chip, called the Drive CX, is mainly targeted at relatively near-term tasks like new digital cockpits with ultra-realistic 3D graphics. The other, the Drive PX, is designed as a platform for developing auto-pilot capabilities.
Excerpt from an article in Barron's this week:
The transitions in technology are becoming more complex,” says Shah of the efforts of Intel (INTC), Samsung Electronics (005930.Korea), and Taiwan Semiconductor Manufacturing (TSM), a contract chip maker that builds parts for Qualcomm (QCOM) and others for a fee. “As a result, the chip makers are making the transition slowly, and not everyone is doing it at the same time, which is creating a smoother capital spending pattern.”
A more cautious observer of the equipment makers, Robert Maire of Semiconductor Advisors, shares the view of a maturing industry, but for different reasons. On the one hand, “the semiconductor industry has consolidated both in terms of the device makers and the equipment suppliers,” says Maire. With fewer players among equipment firms and their clients, there is greater stability, goes the thinking.
Then, too, “Demand has been predictable,” he says, with Apple ’s [AAPL] iPhone “driving the leading edge of technology much like Intel and Microsoft (MSFT) drove the [chip] industry in the ’80s and ’90s.”