Tech investors may have short memories, but they are quick to punish
companies that cannot deliver the goods when it comes to growth. Ultratech (UTEK)
has most definitely been a disappointment over the past year, as
enthusiasm over the odds of the company seeing its laser spike annealing
tools adopted into advanced semiconductor nodes has given way to the
reality of significant share loss at the 20nm (most likely to Dainippon Screen (OTC:DINRY)).
Amidst
that disappointing backdrop of 2013, the shares have rallied about 20%
in recent months. Multiple factories have made LSA the process of record
in their 16nm/14nm nodes, and most factories are looking at LSA at
multiple steps - increasing the overall addressable market. The key
question, though, is whether Ultratech can beat companies like Applied Materials (AMAT)
and get the orders and rebuild its share. I'm still bullish on these
shares (and still an owner), but for all of the interesting potential in
areas like advanced packaging, LEDs, and metrology, it will be the LSA
orders in 2014 that really move this stock.
Continue reading here:
Ultratech Has To Deliver The Orders This Year
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