The VALUE of NVLS:
NVLS is at $26 (in afterhours Wednesday).
It's book value is about $12
Trailing PE of 15 (granted, 2000 was especially strong)
Seems like reasonable valuation...but wait, there's more:
As one threader mentioned, it has about $8/share in cash (just over $1.1 billion!!!).
The CEO talked about expanding the company's business by acquiring other companies. Now with semi-equip beaten up over the last few months, and with $1 billion in cash, NVLS stands to really benefit from this bear market.
Now let's assume the worst case scenario: the economy hits a hard landing, and semi-equip orders from 2001 fall off a cliff. Hey, NVLS has that big reserve of cash, which would enable it to get through the tough times in a more healthy way. PLUS, the company can follow through with its strategy of acquisitions at dirt cheap valuations!!!
Again, this scenario may actually be beneficial to NVLS in the long run!!! Yes, beneficial!!!
It seems that in the long run, NVLS can emerge to become a really commanding company in the industry.
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