Alex...Funny you should ask. I just ran across a very recent newswire about FERO. Previous to this I hadn't even heard of them. Anyway the story got me interested so I dug up some things like earnings history and then did a search using the Lycos engine. Afterwards I checked out the stocks action today. Both volume and price way up. Apparently this little co. has a backlog of $70 million and their last 4 quarter's earnings are going up like gangbusters(40% sequentially) yet the stock sells for something like 26 times earnings. Of course, since their business smells of semiconductors that would explain the low multiple.
Anyway here is some background that I pulled from the net some 20 minutes ago. It's a short info thing on Ferrofluidics (FERO) which is followed by the newswire:
Jean R. Tickler, Marketing Communications Mgr.
40 Simon Street
Nashua, NH 03061
USA
Phone: (603)883-9800
Fax: (603)883-2308
Ferrofluidics corporation the world leader in magnetic fluid sealing technology combines its
proprietary ferrofluid technology with high growth market-driven applications to engineer
materials, components and systems that are high performance products that typically allow other
products to operate faster, cleaner and more efficiently. Ferrofluids manufactures hundreds of
standard and custom rotary feedthrough esigns, emissio seals, state-of-the-art automated crystal
growing systems, electron beam evaporation sources for thin film coataings, bearings for high
performance optical scanners and ferrofluids for stepper motors, inertia dampers and ferrofluid for
audio loudspeakers.
===================================================================
NASHUA, N.H--(BUSINESS WIRE)--March 26, 1996--Ferrofluidics
Corporation (NASDAQ:FERO) today announced an order for its CZ-150
production silicon crystal growing systems for delivery beginning in
December 1996 and raising the Company's backlog to a record setting
figure of approximately $70 million. Fluor Daniel placed the order
as the prime contractor of MEMC Kulim Electronic Materials, SDN.
BHD., a silicon manufacturing joint venture between Khazanah Nasional
Berhad Holdings, a Malaysian corporation, and MEMC Electronic
Materials, Inc. of St. Peters, Missouri. The facility will be
located in the Kulim Hi Tech Industrial Park near Penang, Malaysia.
This joint-venture company will build a state-of-the-art
manufacturing facility to manufacture and distribute 200mm (8")
wafers to serve the semiconductor industry.
Ferrofluidics' Crystal Growing Systems continues to expand and
solidify the Company's position in the growth market of 8" wafer
production, the expansion in the growing Asian market, and the
continuous product performance to support the rigorous requirements
of the semiconductor industry. This order represents the continued
strengthening and expansion of the relationship with MEMC and its
worldwide affiliates.
Ferrofluidics is the world leader in ferrofluid (magnetic fluid)
technology. The Company combines proprietary Ferrofluidicr
technology with broad applied engineering to commercialize
applications enabling customers' products to operate more effectively
and efficiently. The Company currently produces proprietary products
for market applications it believes have high growth potential,
including environmental seals, advanced materials systems,
hydrodynamic bearings and ferrofluid for audio loudspeakers.
===================================================================
I believe that this story was released during the market hours today so this news is undoubtedly the cause of today's action. |
