Hutchinson Technology, Inc. (NASDAQ:HTCH)

CAPS Rating: 1 out of 5

The Company designs and manufactures suspension assemblies for hard disk drives.

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Member Avatar SmartAce (99.86) Submitted: 9/9/2014 10:05:39 AM : Underperform Start Price: $4.22 HTCH Score: +12.89

Cutting grass with scissors.

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Member Avatar asilverp (26.75) Submitted: 8/29/2014 9:57:55 AM : Outperform Start Price: $4.72 HTCH Score: -22.21

P/S, momentum. It might be hurt by the move to solid state drives or it might be able to get away with this business model for a while if it can sell (indirectly) to the rapidly growing Asian middle class.

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Member Avatar TSIF (99.96) Submitted: 8/2/2014 7:48:46 PM : Underperform Start Price: $2.87 HTCH Score: -22.48

Hutchinson Technology is either a long term attractive upthumb with huge potential, or a long term disaster that will eventually sink into oblivion. I'm not sure which, but in the short run, the 30% spike on Friday that drifted up throughout the day is a short term down thumb. Hutchinson Technology frequently has 30-50% spikes, twice over the last five years, these turned into a double over a months spread. All the spikes were given back.

While Hutchinson Technology produced some news that started the uptick, the uptick was fueled over volume, speculators and day traders. Not a recipe to last long, although several days is not uncommon.

Why Hutchinson Technology is so "confusing" overall is that it trades less than 0.50 P/B most of the time. Cash is nearly half of book, and P/S is a measly 0.24. Equities with these metrics can often be overlooked, or beaten down due to one time events. If the company is posting "lower loses", or might go break even to positive earnings, the catalyst can be HUGE.

But Hutchinson Technologies continues to lose money in s big way (relative to its size) each quarter. If this continues, at some point the borrowing and share issues won't cover its needs.

The "news" was that Hutchinson is diversifying, and with extra factory capacity will be partnering with some big players on Cell Phone, actuators for optical image stabilization (OIS). Foxcon is one listed possible player.

My issue is that these type of announcements rarely mean anything for the bottom line. Big players often source from multiple sources, and this is still slated as developmental. Some sources rarely get even a bone of business.

Hutchinson Tech's core business is disk drive suspension assemblies. The disk drive business is healthy, and I thought this should turn lucrative for them, but apparently the margins, scale, overhead are not sufficient. The technology itself will be in less demand as the shift continues from mechanical to solid state drives. The 2,400 employees is HUGE for an $80M company. IN addition, many disk drive vendors continue to scale "in-house" with their components. If Hutchinson Tech was a winner, they would have got bought by now.

So maybe some potential, but way too early to call development income. Hutchinson will need an equity raise soon as losses mount and inventory goes up....book value drops $8-$15M a quarter.

Down thumbing the pop. Might see some more, but float grows as shares are issued and pops should be of lower values. Brings in "day traders" and speculators who think something big will happen.

Short term spike riding. Will watch if measurable real orders occur for the camera actuators.

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Member Avatar Qiqua (< 20) Submitted: 6/7/2013 7:17:17 PM : Outperform Start Price: $5.80 HTCH Score: -56.88

As demand for cloud data storage continues to grow, so will this company's profit margins.

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Member Avatar justatradin (< 20) Submitted: 8/8/2011 12:30:21 PM : Outperform Start Price: $2.39 HTCH Score: -20.13

This company continues to increase efficiency in productions and cost control. The price to book is way to low. This makes for a great investment and a potential acquisition target.

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Member Avatar alaskiian (< 20) Submitted: 2/12/2010 12:46:32 AM : Outperform Start Price: $6.22 HTCH Score: -125.48

Will be a performer.Good returns.Tech stock..eady to run

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Member Avatar StreetJustice (84.84) Submitted: 8/10/2008 12:06:46 AM : Outperform Start Price: $15.67 HTCH Score: -133.07

I like these guys. I think they're turining things around. They increased market share and sales and seem to be reacting well to thier challenges.

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Member Avatar Big8money (66.67) Submitted: 8/7/2008 11:07:05 AM : Underperform Start Price: $15.03 HTCH Score: +133.72

Not likely to go far from current place. Just doing a re shuffle of chairs doesn't change overall market conditions.

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Member Avatar Bivius (< 20) Submitted: 4/14/2008 1:41:02 PM : Outperform Start Price: $15.64 HTCH Score: -129.47

This company has gone through some hard times in the last couple of years. I do believe that the restructing will be completed soon and the share repurchase program will help the stock price rise again. I don't believe the stock will reach it's high in '05, but it should climb back into the mid-to-upper 20s with a year or so.

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Member Avatar Archeantus (79.72) Submitted: 1/30/2008 4:31:08 PM : Outperform Start Price: $16.10 HTCH Score: -130.61

Oversold. Sector growth projected at 12% during 2008.

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Member Avatar porico (< 20) Submitted: 1/2/2007 2:23:08 PM : Underperform Start Price: $23.75 HTCH Score: +130.57

Pinched in core business, new product line is out of core competency- totally unknown if this will lead to any growth. The demise of Cannondale as a public corporation tells me this is risky (Bicycles-> Motorsports, failed).

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Member Avatar drswing (< 20) Submitted: 8/25/2006 1:15:15 PM : Outperform Start Price: $19.20 HTCH Score: -141.96

undervalued

Results 1 - 12 of 12

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