Sheryl Crow may have been right that the first cut is the deepest,
but by the time you get to the third or fourth cut, they all get pretty
annoying. Ultratech (NASDAQ:UTEK)
continues to do the best it can, given that it's tethered to a team of
horses (its customers) that don't seem to know where they're going or
when they'll get there. FinFET development has proved frustratingly
slow, but there are still credibly reasons to believe that this
represents a $600 million-plus market for Ultratech's leading LSA tools.
What
to do with the stock? Honestly, if you've made it thus far, I'd suggest
holding on. The development of FinFET timelines (and tool orders) has
been slower and more opaque than I'd expected, but I haven't really seen
much to suggest that flash anneal from Dainippon Screen (OTC:DINRY) or Mattson (NASDAQ:MTSN)
is the best way forward. When (and if) the orders materialize,
Ultratech could double its revenue over two years. Of course, there is
the risk that Dainippon/Mattson win over fabs and that Ultratech's LSA
tools aren't adopted, so this is really only suitable for those with
above-average risk tolerance.
Continue here:
Ultratech Sliding To The Right ... Again
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