Brooks Automation, Inc.(USA) (NASDAQ:BRKS)

Tech rebound in the next few years as we change technology

Technicals

Healthy dividend with an excellent P/E, in a business that has growth potential.

4 star
div
p/e7.09
stats ok

so cheap

The Semiconductor secotor has been completely oversold well before the recent "correction". Therefore measuring from today the market will bring the stock up, if the market contuines to be down the Stocks Yeild of 3.8 percent will make it appealing to investors.

value screen

low PEG, strong price uptrend

varp screen

Brooks for some reason is getting creamed after what I thought was a decent quarterly report. After reading the conference call things seemed well continuing into 2011. Their financial ratios look good as well.

diodes robots speed should sell lots of equipment

08 EPS: -.34
09 EPS: -1.67
10 EPS: -.2

Undervalued in a big way. About 20% profitable. earnings up. Everything looks good to me on financials. Trading barely above book value. Nothing not to like. Bargain buy right now.

v.l. says good l-term appeal.

I am just bullish about the stock

Has a good balance sheet, growing strongly and trades at an attractive valuation. Looks like they are turning the corner. Long term play for the next 3 years.

I'm taking a chance that it is safe to get back in the water. I picked Brooks Automation in CAPS some months ago and decided to bail with a 14% gain when the SEC turned up the heat on options backdating and NASDAQ threatened delisting. They have since restated their results and are now current with the SEC. The results weren't pretty and the had to write down $50M+ in expenses going back to their IPO in 1996. They stated that 99% of the issues were prior to 2003, when the new management team took the reins. The fat lady hasn't finished on this yet because it is unknown what the DOJ/SEC is going to do about this widespread abuse in punitive terms, and the IRS also hasn't set precedent. Brooks also recently settled a patent case regarding their factory automation products. Things haven't been pretty here, but if the last two quarters are indicative of what we can expect going forward, the clean-up is mostly complete and a turnaround is in place. This company is fundamentally undervalued and I think a 50% upside is possible over the next year or so. Brooks sells wafer transport, wafer handling, and vacuum subsystems components into the large semi equipment vendors for incorporation into the large processing systems. They also sell software to the large semi manufacturers for plant management and tracking wafers through the manufacturing process. Two recent acquisitions look like they can potentially increase their product base and they look to be on a $1.00+ EPS run rate. I've listened to David Nierenberg say this is the most undervalued company in his concentrated small cap portfolio. I tend to agree with him if the company can clean up its execution and put most of this nonsense behind them. I think the new management team is on the right track. Outperform from here.

Poor management team with too many acquisitings and no way to integrate those different business. Or just call its management team knows nothing about synergy.