Nanometrics, Inc. (NANO)

expecting short term pull back in < 6 months

Ultra

Stocks of companies like this rarely amount to anything.

Way over valued. cant wait to see this go down 20-25 pct over the next month... heee haw

Nanometrics, a company I have owned since before it became public is the leader in small feature precise measurement of small dimensions in semiconductor devices and in the masks used to product the devices. The economy is starting to show small signs of improvement.

With this improvement there will be another strong, positive cyclical demand for computers and the semiconductors used to build them. Orders for semiconductor capital equipment will first start to slowly improve, then surge in late 2010 and well into 2011 and beyond. Nanometrics will fully participate in this renewed demand.

From the current price of about $11 per share, Nanometrics has the potential to reach as high as the mid-forty dollar per share level over the next three to five years. Nanometrics is a STRONG BUY over the next three to five years.
Kahuna, CFA

Look's like the speculative money is starting to drain from this one. Growth has to be spectacular to justify the current yield.

Underperform recommendation from what I would refer to as a rampant overvaluation at these levels. Nanometrics has never shown any real consistency in turning a profit and they even STATED in their quarterly report that their revenue growth would begin slowing. If you didn't notice, 15% revenue growth isn't exactly blowing the door off the barn. Despite a relatively low 19M in debt, thats quite a hefty load for a company like this and could pose a credit risk going forward. Although like Vanamonde said, this could have long-term potential, this is a venemous snake waiting to suck your money in the short-term.

UltraLong

Power move just beginning.

Great turn-around job by new CEO and positioned well for the industry recovering in 2010.

the high volatiliy (beta) of these stocks & their tremendous run up in this bull market will mean a much larger fall than the S&P 500 when the market falls.
Due to their volatile nature, these stocks provide a great opportunity to score lots of points for a redthumb pick.
SHORT:cot,ogxi,lnet,mtg,pmi,smrt,rdn,immu,sva,nano,smp,bont,ymi,stec,trgt,lad

nanos are my favorite

This stock has sound tech. Currently in a good climb. Some shares sold of yesterday and today but this leaves room for more buying and price increases.

A solid stock, but the age of nano is not quite here yet. I think this will underperform then outperform in the future.

future

Almost out of cash, will have to start issuing shares to raise some cash to remain in business. New CEO isn't going to help them if they are broke.

Company hasn't made any money yet, doesn't look like it's going to any time soon.

paydirt

huge insider holding while no insider sale even though share price dropped from high 15.43 to 8 means insiders have confidence.

2007 outlook is good.

Nanometrics is a leader in the field of high performance process control metrology systems, used during the manufacture of semiconductors and Integrated Circuits (IC’s). These systems measure and inspect different characteristics of semiconductors and IC’s during various stages of manufacturing thus helping them to improve efficiency and yield. The company derives its revenue from product sales and customer service, with the former accounting for nearly 85% of revenue for the last two fiscals. The company caters mostly to clients in the US and Asia.

Net revenue for the nine-month period ended September 2006 up 27% as a result of higher service revenue and increased demand for products as more and more semiconductor manufacturers are moving towards 300mm wafer technology. The growth in service revenue can be attributed to the acquisition of Accent optical solutions and increased demand for post-warranty service contracts.

The metrology systems market is highly fragmented with KLA-Tencor enjoying the dominant share. The industry is expected to grow at a rate of 12% in 2007 from its current revenue of $4.5 billion. This growth can be attributed to reasons like ongoing shift to 300mm wafer technology continuing in 2007 and wider acceptance of 65nm chip technology. These changes lead to better performance and memory chips, which require advanced monitoring products. Demand for integrated metrology systems are increasing as it helps to reduce cost and improve yields better than tradition metrology systems.

The company has reacted positively to these changes by coming out with advanced systems like its 9010 line which caters to integrated metrology systems. With its well-positioned product line it can continue to address the 300mm wafer and 65nm chip market. The company improved its market share to 15%, behind KLA-Tencor; after its acquisition of Accent and Solaris. These acquisitions also strengthened its presence in other areas like optical CD and overlay systems. The company is also planning to increase its outsourcing component in manufacturing to more than 70% from its current 40% and thus reign in on the cost factor.Thus the fundamentals of company stock looks sound in the near future.

undervalued while it absorbs an acquisition. nice position in niche semi-equipment market