Recs

2
Player Avatar BYRDJD (55.01) Submitted: 12/23/2009 1:20:56 PM : Outperform Start Price: $19.05 ATMI Score: -16.08

This company is a relatively pure play in the supply of materials for semiconductor manufacturing, an area that I think will grow as more consumers in the Brazil, Russia, India, China and Korea (BRICK) developing nations become more affluent and want their own computing devices. The fact that ATMI's products are consumed implies repeat business without having to sell each unit separately, lowering sales and general administrative costs.

ATMI gets a Morningstar 5 star rating. The quarterly sales are growing at an accelerating rate. Cash flow is,has been throughout the recession, positive and growing. The company has a strong balance sheet. In the 3rd quarter, ATMI turned the corner into a quarterly profit. Based on my analysis, that trend will continue and make the earnings growth accelerate as the additional sales will not require a like amount of overhead, growing EPS faster than the growth in sales.

Member Avatar BYRDJD (55.01) Submitted: 7/8/2010 7:30:52 PM
Recs: 0

The first quarter of 2010 bears out my thesis: quarter over quarter sales increased 1% over the 4Q09, earnings increased 24%, free cash flow increased 52%. EPS grew from 20 cents per share to 27 cents per share, beating estimates each quarter.

Second quarter results should be out soon. I hope to see growth in sales, greater growth in income and greater still in free cash flow. That is my test for continuing to hold this stock even though it the stock price has fallen.

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