If FinFET-related annealing orders eventually do appear in 2015 and
the 3D advanced packaging opportunity develops as management hopes, Ultratech (NASDAQ:UTEK)
will likely look like a study on the rewards of patience. If the trends
seen throughout 2014 continue, it's going to be an experience in death
by hundreds of papercuts.
Ultratech still isn't seeing the orders
for its LSA systems that it needs to generate attractive margin leverage
and get Wall Street enthusiastic about the shares. 2015 is shaping up
as a make-or-break year, but then 2014 was supposed to be that way and
leading chip producers like Taiwan Semiconductor (NYSE:TSM), Intel (NASDAQ:INTC), and Samsung
delayed orders in response to FinFET yield issues. While a strong LSA
cycle and growing interest in the company's advanced packaging and
metrology products could eventually support a much higher share price,
the high teens to low $20's is probably as good as it gets until/unless
those orders start to show up in the company's books.
Continue reading here:
The Wait Drags On With Ultratech
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