*AV*--UTEK--I do not know if I would consider it having bottomed here.
I believe that UTEK has a good deal of support at the $26-$27 level relative to what has been happening to the other semi equipment guys and especially the stepper companies (SVGI and ASMLF). Slightly more than 50% of its business could be construed as being out of the semi field (micromachining and Thin Film Head devices) but I would have to look real close at what the actual ratio is. Basically, UTEK should be much higher than its present price.
Net Sales down from $47.3M to 43.5M in 4th Qtr but net income rose to $8.6M from $8.0M in comparative quarters.
Net Sales reached just under $200M (~$194M which is a 22.6% increase. Net income for the year was up 45% to~$35M or $1.66/share. Gorss margins reached over 54% in 4Q96 as a result of a more favorable product mix and improve manufacturing efficiencies. Operating expenses decline from $13.7M to $12.8M, 3Q96 to 4Q96. UTEK has over $150M in cash, cash equivalents, or short term investments. Share holder equity is ~ $11/share. Six month backlog is $81M with most of it in the TFH area (non semi), followed by scanner replacements, mix and match and finally micromachining.
You go figure why a company with these type of financials and an obvious survivor and possible winner realtive to the semi downturn last year, should be so undervalued and under appreciated and unrecognized in the marketplace.
I am holding on to these shares with crazy glue. When UTEK is properly discovered and fully understood and recognized for what it really is, it will reap the whirlwind. Look at the ASMLF chart for the past few months. ASMLF has almost dopubled in price based on their DEEP UV stepper and not much real volume in the number of systems delivered.
Do not get me wrong, ASMLF is a very fine company. It is just that UTEK should be enjoying similar accolades and a similar price rise that ASMLF has enjoyed over the past months.
You can only deny them for so long.
BTW-you are asking for comments into an area of extreme bias on my part. I have a long history on this company and with this company and have very strong emotions here. These emotions, though, are back up with very favorable facts that cannot be discounted, but they obviously are. |
