In all honesty I ran across MASK a year or so ago by accident - Photronics had been such a good investment for me I was looking whether to add to my position or continue to hold what I had, and researching the company and photomask outlook I liked what I saw long term, as more and more photomask production was being outsourced to fewer and fewer players - seemed like PLAB and DuPont got a majority of the share of the high end stuff, and MASK was sort of a back up supplier of middle to lower technology masks. Photomask demand is not as cyclical as chip makers, therefore not as risky in my opinion, another reason I like this sector.
While PLAB and DuPont have faster growth rates they also have much higher PE's, and MASK was a steal at $13 a share - it was profitable, good but not cutting edge technology, and expanding market, and a lot of customers use two suppliers to reduce risks and have a back up - and MASK fit the bill well there while making some inroads as managements got comfortable with dealing with them.
I will say one thing, they have been very accessable to me for any question I've had - moreso than most other companies, which I really appreciate - in the end demand from investors is what drives stock prices upwards, and if they like to tell their story it always helps. I especially appreciated their honesty - they really admitted some shortcomings and had a plan to address them, did not try to bs their way thru the question or change the subject.
I was just writing up a draft update, and was also noticing the earnings increase Oppenhiemer projects in the buy recommendation. I'm not sure exactly what they base their increased earnings on, but I know business has been good.
Hope this helps. I will say I liked MASK a lot better at $13 a share than at its current price, although long term it still has value in my opinion.
Best - Joe |
