AV: Many thanks for researching the very welcome UTEK/APM connection. UTEK investors may benefit regardless of the nixed merger!
Between APM and RDRT, I assume we're looking at a majority chunk of the next generation of TFH and MR production. The estimates (and presumably the demand driving same) are formidable. APM earned 1.35 last year on a 30% increase in TFH sales, according to S&P. They're expected to earn 3.87 this year, and 5.30 next (Zacks). I assume similar % gains apply to our old friends at RDRT. Also, estimates for the drive makers reflect huge % gains, year-to-year: e.g. 310% for SEG, 240% for WDC, (96 to 97).
The ultimate question for UTEK investors (given the company's 80% market share in head steppers) is how this balloon in demand will translate into the appropriate cap ex at RDRT and APM.
On the General Lithography thread, you've hinted at how UTEK assisted RDRT with development (or is it purely implementation?) of the new head generations (MR?). How did this actually transpire, and what time frame do you think UTEK can expect for the appropriate cap ex, e.g. has most of that investment already been made by the APM's and RDRT's? (Hope not!)
(APM is selling today at a forward P/E of 6.)
Thanks, as always, AV!
Bill |
