Cabot Microelectronics Corp (NASDAQ:CCMP)

CAPS Rating: 3 out of 5

The Company is a supplier of high-performance polishing slurries used in the manufacture of advanced integrated circuit devices within the semiconductor industry, in a process called chemical mechanical planarization.

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Member Avatar dajasc (< 20) Submitted: 12/4/2007 3:03:47 PM : Underperform Start Price: $26.15 CCMP Score: -28.49

This company has underperformed the industry it serves consistently over the past few years. It's bread and butter business (polishing slurries) are becoming increasingly commodity products. It's effort in polishing pads is old, probably seven years, and still has made no impact on revenue. While that segment is higher margin than slurries the reason for that is the pad market is almost completely controlled by one company, Rohm and Haas. My expectation is that either CCMP will never be successful in pads or that margins will fall through the floor when they enter and it becomes a commodity business just like their slurry business.

Additionally, their attempts to put that cash they have on hand to use with acquisitions of new companies has been nothing short of laughable.

Finally, after listening to a few earning conference calls, I believe the CEO might not even be aware of the existence of the market his company is supposed to serve. Ok, that's extreme, I'm sure he knows it exists but he clearly doesn't know a thing about it. Overall week leadership is the final reason I would dump this one.

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Member Avatar PressBoard (< 20) Submitted: 10/9/2007 10:22:16 PM : Outperform Start Price: $32.79 CCMP Score: +1.54

New product keeps this semi-conductor industry feeder company on the cutting edge.

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Member Avatar NetscribeBasMtrl (26.22) Submitted: 12/29/2006 4:08:47 AM : Outperform Start Price: $23.93 CCMP Score: +37.78

Cabot Microelectronics Corporation (CCPM) is a leading supplier of high performance polishing slurries used in the manufacture of integrated circuit (IC) devices within the semiconductor industry, in a process called chemical mechanical planarization (CMP). In recent years, the company has expanded its offerings to include polishing pads for IC fabrication and slurries for disk drive applications.

The CMP slurry market is underway to become more fragmented due to the growing number of new applications and materials used within semiconductor devices as well as the increased desire for custom slurry solutions from the customers. It is believed that this trend is to company’s advantage due to its dominant position in the slurry market as well as its significant level of resources that can be put to task to develop new process solutions.

In addition to growing internally, CCMP is expanding through acquisitions including QED Technologies, Inc. (QED), contributing around $5 million to its top-line in recent concluded quarter. As the semiconductor industry recovers in 2006 following a downturn in 2005, revenue for fiscal 2006 increased by around 18%, and is expected to follow the suite with an average growth rate of 15-16% next year. With multi-year supply agreements in its tally, the company is aggressively working upon higher operating margins.

As pad development and customer acceptance are progressing, CCMP is strategically focusing on polishing pad segment, which offers higher margins. With the company looking for investments in demand driven Taiwan and other Asian markets, a positive operating environment is well anticipated for the company.

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Member Avatar NewOldGuy (52.36) Submitted: 12/9/2006 12:53:02 AM : Outperform Start Price: $23.32 CCMP Score: +42.15

Semiconductor industry is a go in 07 and this is one of a field that will do well. .

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