II-VI, Inc. (NASDAQ:IIVI)

CAPS 5

This is a thumbs-up CAPScall, as explained in my article Bad News Sends II-VI ... Higher?
http://www.fool.com/investing/general/2011/12/21/bad-news-sends-ii-vi-higher.aspx

II-VI has high barriers to entry; a sound, proven, long-term business model; and the possibility for strong growth in its target markets. I think current prices provide a good entry point.

Why not fool!

I like the sounds of them - like they have common sense

Great growth potential now trading at an attractive valuation.

Poised to Pop

IIVI is down 40% from its 52 week high.

Let's make no bones about it, it's a cyclical company. In 2009, yearly EPS dropped by 55% from 90 cents in 2008 to 40 cents in 2009. The P/E in March 2009 averaged at approximately 13. In 2009, IIVI managed to eke out a profit in the worst of times and remain cash-flow positive for the most part.

That's approximately the P/E range where we are now. I believe that IIVI has strengthened financially since then.

This is just a first glance on historical guidance, combined with a belief that we will not re-visit the 2009 lows in revenue.

good
No debt.
insider holding 13.6%
peg=0.6
rising star buy
bad
high p/s
high p/e

1) Heavy Insider Ownership
2) Experienced Management
3) Make a product that must be repurchased again and again due to wear and tear
4) Small Cap (lots of growth left)
5) Fantastic Balance Sheet
6) Almost no competition
7) Futuristic market
8) Great FCF

(Note) Dont like their recent 2 acquisitions; something doesnt feel right about them

http://www.fool.com/investing/small-cap/2011/04/04/rising-star-buy-ii-vi.aspx

Following the rest of the fools.

Following my fellow fool's!

Here's the buy rec:

http://www.fool.com/investing/small-cap/2011/04/04/rising-star-buy-ii-vi.aspx?source=ihpsitota0000001&lidx=3

Covestor Model Manager Vista-Investment Management bought IIVI in his Core Holding Covestor Model ( http://covestor.com/Vista-Investment-Management )

I love companies with solid balance sheets and that generate siginficant free cash flow. I love them more when the market overreacts to earnings. Pick some shares up on sale today.

IIVI's unique market niche, in II, VI semiconductors gives them repeated chances to find unique solutions to new problems.

Near 52 week low, High percentage of outperform picks, diverse market. Other members who have picked this to grow even at $24 have good scores long term. Another great buy in this down cycle, but snap it up quick before the market recognizes it's true value.

The pitch for this stock can be found on the Stinky Feet bulletin board at http://boards.fool.com/Message.asp?mid=26921262 . Stop by and let us know what you think of this pick.

At current prices IIVI represents a solid bargain if you have the timeframe to ride out any potential bumps over the short term. The company has a strong balance sheet, with 70 million in cash and only 4 million in debt due within the next five years. The company also has strong management and has been steadily growing margins over the last 5 years.