To Kevin and All:
I just reviewed the quarterly statement. I may not be an expert in semi equipment manufacturing, but I do know how to read a balance sheet. I found several things very interesting about this one:
1. Cash represents 66% of current assets - no games are being played there!
2. A current ratio of 7:1!!!!!! I just told the board of directors of my company that our current ratio of 6:1 is unbelievable!
3. Price-to-book of 1.5 -- definitely not overvalued in these times, even if it were a commodity-type company.
4. Current assets were essentially flat, but current liabilities decreased by 7% --- a sign that the company is definitely not in financial stress.
5. R&D did go down 16%, which, in this business, is not good to see. However, SG&A was brought down a much larger 28% - - good management.
Overall, I'm relieved (after the price action over the last week), if not pleased about the results. UTEK is definitely ONE HEALTHY COMPANY!
The price action today wasn't too bad either. UTEK survived a double-wammy, with the deposed president announcement last night and the earnings release today. Who knows what the market will do to our poor UTEK in the future, but I wouldn't be surprised if UTEK's correction was nearing an end.
I'm definitely in a buying mood on this one. If I see another surge of weakness, I may even -- !!! !!!! --- loose total control !! It sure would be fun, though.
Best Wishes,
I2 |
