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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Donald Wennerstrom who wrote (42526)	1/6/2009 12:10:30 PM
From: Donald Wennerstrom	1 Recommendation Read Replies (1) \| Respond to of 95572

Photronics a Sell to $1.50 Posted Mon Jan 05, 10:38 am ET Posted By: Ken Nagy, CFA The manufacture of photomasks is increasingly turning to in-house facilities at more mature nodes. Consolidation within the industry continues, as semiconductor manufacturing companies acquire photomask production assets. Photronics, Inc. (PLAB) is the last major independent merchant supplier. The capital structure has considerable leverage with a debt-to-equity ratio of 41.7%, which will be lowered after the convertible bonds mature in December. Almost all of the debt is convertible subordinated notes, which if exercised, could potentially be dilutive to equity shareholders. Photronics has strong technical development capabilities, and is experiencing growth in its 130nm and 90nm product lines. In the near-term, this growth will not outshine a maturing legacy product and soft markets. Consequently, we rate shares of PLAB a Sell. Our target is $1.50 per share. zacks.com