Within the world of semiconductor equipment, Cascade Microtech (CSCD)
is a tiny player, though it has respectable market share in what
management has traditionally viewed as its core markets. New product
launches and improving margins have done wonders for the stock (which is
up almost 90% over the past 12 months), but I think there could still
be more to come.
Cascade has not only been developing new products
to broaden its addressable market, but has also been acquiring
technologies and products that should help the company transition to the
next major developments in chip design. Cascade does not have a great
record when it comes to sustainable margins or cash flows, and it does
operate in a notoriously cyclical industry. Even so, I don't believe it
takes particularly heroic assumptions to suggest that the shares could
still have upside.
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New Products And Technologies Can Continue To Push Cascade Microtech
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