Good morning Zeev, as you know not every small 1-product software company should be valued on the same metrics that are used for MSFT, I see no relevance in comparing CCMP to AMAT. There're plenty of small semi/semi equip companies that trade with PE of 10 or lower, at P/S of about 1 or lower. If you use those metrics, CCMP should be valued at about $20.
Keep in mind that CCMP's forward growth is declining significantly which will become obvious to you. In addition, there's new competition coming to the market, competition from well established, well funded companies.
And if the court's ruling (could come this Fall) is in favor of Rodel in the patent infringement case filed by Rodel against CCMP, CCMP's revenue will practically go to zero overnight. [ United States Patent No. 5,391,258 (entitled "Compositions and Methods for Polishing") and United States Patent No. 5,476,606 (entitled "Compositions and Methods for Polishing").]
Does RMBS ring a bell?
Regards,
Tom |
