FormFactor, Inc. (NASDAQ:FORM)

CAPS Rating: 4 out of 5

The Company designs, develops, manufactures, sells and supports precision, high performance advanced semiconductor wafer probe cards.

Recs

2
Player Avatar OldFatherHubbard (< 20) Submitted: 5/30/2008 12:05:51 PM : Underperform Start Price: $21.90 FORM Score: +112.55

I think the bit about 450mm waers in 2012 will re-juvinate the industry overall. I'm not sure this little small-cap will have th rest of what it takes though to play ball with giants such as intel when comes to selling their "newtech" wares.

Member Avatar Manutius (< 20) Submitted: 12/7/2009 11:27:36 AM
Recs: 0

You need to check FormFactors business model! They don't make chips, they make test equipment (predominantly "probe cards") that manufacturers use to test chips during chip production. Intel isn't a competitor, it's a (potential) customer. Design a new chip with a new "form factor" (geopgraphic layout) and you need a new set of probe cards: not many firms have the expertise and technology to design and produce probe cards. FF is one of them, with important, patent-protected technology and the world class expertise needed to work with the manufacturer, making sure that the probe cards are ready when the production line is ready to roll. This is not to say it doesn't have competitors of its own -- its still a speculative small-cap! But if and when semiconductors come out of their recession (they were one of the bellwethers of the one we're in, tanking early in 2008) FF is probably poised to do very well indeed. (Consensus guess seems to be sometime in first half of 2010.) People are currently building early positions because this could be a quick multibagger when semiconductor production heats up.

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