Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC)
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The Company designs, manufactures & markets capital equipment & packaging materials as well as service, maintain, repair & upgrade equipment, all used to assemble semiconductor devices. Currently supplies semiconductor wire bonding assembly equipment.
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K&S is a semiconductor equipment company, one of many in the Magic Formula screens right now. K&S's specialty is selling tools for the bonding process, where the semiconductor device itself is connected with the containing plastic package. Semi equipment is a very cyclical business, and we are coming off a boom year, where K&S more than tripled revenues from 2009. The company has a good balance sheet and an emerging opportunity in LED bonders, but many analysts expect chip equipment demand to fall off significantly in 2011. Even so, the stock looks oversold.