Sunday, July 20, 2014

Seeking Alpha: Ultratech Sliding To The Right ... Again

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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