Align-Rite Int'l (MASK) is in the semiconductor photomask business.
Only other listed companies are Photronics (PLAB) and DuPont Photomasks (DPMI).
The semiconductor photomask companies have been beaten down along with the rest of
the semiconductor companies. Although the business conditions in the photomask
business seems to be in good shape. Demand for photomasks, which are basicly the
blue prints needed for the creation of a new integrated circuit, should continue to grow
as more and new uses of semiconductors are developed. Earnings are still growing and
forecasts of the future are still bright. Why then is Align-Rite selling at only 8 times trailing
12 months earnings while Photronics sells at 15 times and Dupont Photomasks sells at
13 times earnings. Align-Rite is the smallest of the three companies, but a 40% discount
to its larger brothers seem too extreme.
Estimates of fiscal year 1997 ending Mar-97 are $1.25.
Assuming a PE ratio of 12.5 would lead to a stock price of $15.625.
This is a 50% gain from todays price of $10.00 for MASK.
Anyone out there own or follow this stock or industry? |
