Brandon:
Sorry to have taken so long in responding. I have been away on business.
I have received the financial statements for the last few quarters
on CLEA and the message is pretty clear: CLEA is relying on stockholders
to fund current operations. They have made a couple of minor sales;
however, nothing near the level needed to operate a successful business.
In spite of the negative picture I have painted, I find CLEA compelling
on several fronts: a patented, one-step process for cleaning and drying
semiconductors; a process that is earth-friendly - that is, no chlorofluorocarbons
or other volatile cleaning fluids; a process that improves quality, its cheaper, and
3M has worked out an agreement with CLEA on cleaning solutions. In addition,
Claire is working with Motorola, Digital, Honeywell, DuPont, and others in testing
this new cleaning/drying process.
Claire does have competition. That billion dollar market segment
is dominated by a couple of firms. However, the market leaders have not
been working aggressively on a "clean" process. Claire's management
staff seems sound enough with most members having a good track record.
Perhaps, if things go well enough and CLEA shows real promise,
they could be a potential buyout candidate.
But don't kid yourself, this is a HIGH RISK stock.
If the technology doesn't pan out, if a competitor out paces them, if they
don't make enough sales, etc.
As far as the price drop from its IPO, I would attribute that to stock
frenzy at the time for tech stocks. I found no tragic incident to
account for the drop.
I hope that this helps. I bought at 60 cents and will probably buy
another 1000 shares at 45 cents. I don't see real movement for awhile,
so take advantage of any drop. Early 97 should be more rewarding.
And by the way, remember how much you paid for this advice!!!! |
