<<And they don't have much sales to SEA>>
SVGI had 4 (of roughly 63) sales to SEA this year and they all got pushed out or pushed back. The analysts are using it as an excuse not to upgrade the stock. If SVGI weren't such a wild card in so many ways, it would be my favorite at this price as it is dirt cheap.
Their scanner is good. This is from memory, but I think SVGI has a continuing tech edge in size of field and focus-type issues. I think it's Nikon who is on their tails, having announed an increase in field size a couple of months ago, and ASMLF is also in the game. I don't know about Canon's products, but Intel has either ordered some scanners from them or is considered the leader for their business, which is VERY bad news for SVGI. An on yet another hand, SVG has almost no Asian exposure (in fact, it has almost no exposure anywhere, haha) so won't suffer from spending cutbacks. Seriously, its main contacts are American and I think some in Europe, which would help it short-term.
You'd have to guess SVGI, just as a practical matter, is going to have some ramp-up problems compared to the high-volume distributors.
The big trouble with SVGI, for an investor, is that it's still a one-man show and hasn't made the transition to the publicly-held corporate model. Personally, for me, this is a big caution, as a lot of tech firms have failed to make the transition and gone down the tubes due to the founder's peculiarity -- just look at Apple and Hayes, to name two. The larger question, for me, than SVG's technological position is whether it can translate that position into earnings. |
