Align-Rite Int'l (MASK) Undervalued compared to PLAB DPMI Message Board

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Technology Stocks : Align-Rite Int'l (MASK) Undervalued compared to PLAB DPMI

PLAB 22.68

-2.5%

Nov 6 3:59 PM EST

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To: TI2, TechInvestorToo who wrote (212)	6/2/1998 3:16:00 PM
From: Crossy	Read Replies (1) of 388

TI2, it seems that MASK is even better positioned than I initially thought. Remember, in my analysis I concluded that we will need sales levels for next year of about $49 million in order that the new eqipment from ETEC will be accretive ? Ok, now with this earnings report they are showing almost $13 million sales for THIS quarter. Now we know that this is a non-seasonal business, so we can calculate implieed annual sales of almost $52 million from it. This means that the current paces * ALREADY * satisfies the criteria I derived for their expansion plan to be immediately accretive. Furthermore it gives an indirect confirmation to my belief that no bankloan will be necessary. In fact I now even more strongly believe that cash-flow alone together with the cash-reserves will suffice to finance the expansion plan. It's a great achievement on management's behalf and the new board-level talent they brought in from captive shops only undersores the notion that MASK will be a major force to be reckoned with. Imagine the level of financing available to them after the year 2002 and beyond when all the depreciation from 1996+ will cease to hit earnings. By 2002 MASK should be able to move things 5 times as big as the ETEC purchase this year. This leads me to believe they might be able to capture market share bigtime. Right now they are way behind PLAB & DPMI in terms of size. MASK is $52 million per year, PLAB & DPMI are 4-5 times as big. But MASK should be able to reduce the gap. I like the company.. best regards CROSSY

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