There was more insider buying last month. In May CAMD Board member, Angel Jordon, bought 21000 shares at $2 3/8 and VP of Sales and Marketing, Charles Bellavia, bought 5000 shares. That makes 33,200 shares for Jordon since last September. All together 11 members of management and the CAMD board have bought 113,200 shares over the last 12 months. Something positive must be happening at CAMD.
Also, Merrill Lynch sees the passives market strengthening for the first time in several years. Last week Merrill upgraded three passives companies: AVX, Kemet and Vishay. Merrill also singled out AVX citing their 0612 Z array, a thick film array with 2 capacitors and 2 resistors as a breakthrough in integrated passives technology. In comparison, CAMD's 1284 has 72 components on a single thin film chip.
At CAMD last quarter design wins for their new PAC products doubled over the previous quarter to 33 design wins. These products have grown to nearly 30% of revenues versus 0% two years ago. The Electronic Industry Association (EAI) projects the market for these integrated passives will grow 41% this year and 113% next year. The EAI says this market grew 22% in 1998. CAMD has a 32% share of this new market category.
And, CAMD has been rolling out 5 to 6 new products based on this technology each quarter. As these new PAC products pass the 50% of revenues mark, CAMD's revenues should start to reflect real growth and at better gross margins. That could happen this year.
CAMD now has the potential to grow very rapidly and be quite profitable. CAMD is going to be worth a lot more than $2 and change a couple of years from now. |
