Julius, I have been following KLIC for a long time now, and I have observed that they are always "undervalued" relative to their peers. I fear that KLIC may be destined to always be valued at only a fraction of its peers, relative to its earnings, growth rate and book value. I often asked myself why, and came to the conclusion that their products, while quite useful, are relatively "low tech", like saws, wire bonding equipment etc, and the market simply does not put in the price any major expectations, such as, who will capture the major share of the copper market, or CMP, or sophisticated scanner, go at close to $10 MM each, or for that matter DUV lasers that now go at close to $1 MM a piece. A big win for KLIC is to grow at the rate of the chip business in general. Just one man opinion.
Another personal opinion is that I do not know a single stock I am so sure about its future prospects that I will put 25% of my assets in it, less so a stock in which I will put 40%. You are already heavily concentrated in the semi equip sector, a degree of diversification out of it might make sense, IMHO.
Good luck.
Zeev |
