Amtech Systems, Inc. (NASDAQ:ASYS)

The entire semiconductor industry is reeling right now (and has been for years), but Amtech just seems too good to pass up. BuffettJunior turned me on to this one when it was "ridiculously undervalued" near $8 per share. Now what is it? CAUTION: see below.

My mistake, and this may still hold at current prices, was in thinking that it couldn't get worse. Well, 3Q12 proved me very wrong. As with other semiconductor companies Amtech has been bleeding money, although it has *only* been doing so for the last three quarters, which is pretty good compared to others. If things start to pick up before the end of 2013 then Amtech has a shot at being a great green thumb. Investment worthy? Probably not.

Net/Net trading below cash, insiders have been buying lately. I don't really understand solar well enough to have conviction for a RM holding, but interested to see how this plays out. I feel like there are a few net/net solar manufacturers right now like this one that have insiders buying, are repurchasing shares at bargain prices, and will reward patient investors who stick through the storm. Looking forward to seeing if that is the case here-- you will likely have to be patient

net income loss 5,079
amtech system 3/31 80%decrease for solar for
March 31
80% decrease for solar market for March 31Q
second Q Margin decrease 75%

Postives: Amtech is doing a great job turning equity into real returns - ROE mid-teens. Also very little debt (not highly leveraged) gives me comfort that profits won't be swallowed by interest expense). Valuation is amazing on this as well. Revenues have been tracking up for 8 ish quarters - good to see (w/ the exception of Q4 2011). Good to see a company that is getting strong return on equity while increasing their top line growth without putting a bunch of debt on the books.

Concerns: Why is this stock trading so low? I'm always a bit apprehensive when buying a company w/ an extremely attractive valuation b/c it may indicate something else is going on or that the company is just that - worthless. Also, 2011 Q4 Revenue was down and an outlier from the strong top line growth seen over the last 7 or so quarters...

Bottom line: i'll buy... upside outweighs risk here. i was considering CAMT as well, but that stock was too risky for me (you can check it out, i think valuation is correct - market sees the risk)

Got the idea to look at this one from dragonLZ. Did my 15 minutes of DD and liked what I saw...

If the macro pictures turns on me here I am screwed but if we resume the rally this think should bounce in the near term.

Finviz, high EPS projections, low PEG for small caps.

Despite what some might think, solar is going to be a big part of the future and it will require the best tools to be competitive. ASYS has t he best tools.

too much discounted

Very bullish here! # 1 reason is CFO bought shares on the open market a few days ago. CFOs of small companies usually don't get paid a whole lot, so this is a very strong signal IMHO. In addition, the balance sheet is amazing - $6 per share in cash (more than 50% of market cap), EV/EBITDA is below 1! P/E ratio is 4, forward P/E is 7. These ratios might sometimes indicate a value trap, but I don't think this is the case here with the CFO buy. Looking at the trend from the past few quarters of income statements and balance sheet numbers, it looks very positive.

Saw on this article: http://seekingalpha.com/article/289987-3-replacement-stocks-for-magic-formula-investing?source=email_authors_alerts

Everything is just right for this stock, price, markets and management and it should just keep rising . Get is now for the fast and money making ride. Plenty of cash ahead, fun all the way with no crash. Should double each year for next two years then look at it close for another ride up, will be shooting fireworks at end of this ride. Happy flight.

solar will grow exponentially in next decade and asys will provide the stuff to make the panels. recent insider purchases.

Long watchlist

Great fundamentals, massive growth sector (solar), machine tools rather commodity (panels) provider. What's not to like?

Superb investment for 2011.

PEG extremely low which is based on estimates of revenue and EPS that will be totally crushed by the actuals.

$100 dollar stock in a couple of years

oil price on the rise. The push for greener energy. good aquisitions and another 32 million $ order Feb 2011

Solar is hear to stay and even though Solar can only currently exist via subsidies prices will come down. ASYS is a good way to diversify in solar and invest in a small cap at the same time. Plus, ASYS's china customers should have a help in their growth.

Great growth story.

Just beaten earnings by 60%.2011 EPS estimate will be closer to $2.30 per share than the 1.33 forecasted (this is likely because the analysts have not reviewed models is several months).

Cash alone justifies 25% of value.

Currently priced at less than 1 times 2011 revenues

1 Billion dollar company in two years. Currently trading at 8 times 2011 earnings and less than 1 times 2011 sales this company enjoys very fast growing demand which has allowed better ecnomies of scale and also better pricing.
The cash position is at 50M which explains more than 25% of its current market cap.

Serves the Solar industry with equipment and the solar industry is heating up.