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$18.27 -0.49 (-2.61%)
7/23/2008 4:00 PM

IPG Photonics Corp (IPGP)

CAPS Rating:
*****

The Company designs and manufactures a line of high-performance fiber lasers and fiber amplifiers for diverse applications in numerous markets, such as materials processing, communications, medical and advanced applications.

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What the Community Thinks

Total Members

745 Outperforms
14 Underperforms
 

All-Stars

217 Outperforms
3 Underperforms
 

Wall Street

7 Outperforms
1 Underperforms
 

Members bullish on IPGP are also bullish on:

Members bearish on IPGP are also bearish on:

Ticker Tags

Small Cap (1922), Lasers (4), Semiconductor - Integrated Circuits (78), IPO in 2006 (165)
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IPG Photonics Corp At A Glance

Current Price: $18.27
Last Trade Time: 7/23/2008 4:00 PM
Open: $18.66
Previous Close: $18.76
Daily Range: $18.23 - $18.92
52-Week Range: $13.80 - $22.34
Volume: 284,091
Market Cap: $830.64M
P/E Ratio: 26.06
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Stock Trends

IPGP VS S&P 500 (SPY)

IPGP 12 month chart vs. S&P

News & Discussion Boards

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Top Bull Pitch

Recs

5

IPG Photonics Corp (IPGP)

Avatar tuffsledding (99.94) Submitted: 3/23/08 8:10 AM

Another beaten down tech stock with outstanding innovative technology and great growth prospects. Mr. Market is giving us some attractive entry points to companies with vast growth potential.

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Top Bear Pitch

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Recs

0

 (IPGP)

Avatar johnwoo88 (< 20) Submitted: 7/22/08 11:08 AM : Outperform Start Price: $18.21 IPGP Score: -4.71

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Recs

1

 (IPGP)

Avatar Turtleread (37.23) Submitted: 7/11/08 12:32 PM : Outperform Start Price: $18.06 IPGP Score: -3.06

1. Laser tech firm (fiber lasers).
2. Pick up shares cheap somewhere between $18-20.
3. Target $40 in two yrs., maybe $60 in four.
4. No dividend on this one so you will have to be patient with the price appreciation.
5. Low debt.
6. Gross margin: 45.07% Net margin: 16.82% (Pretty good)
7. Relative strength of stock last 3 mos. 90.
8. Inst. ownership: 42.1% A++
9. EPS est 12/08 .82 est. 12/09 1.11
10. Book value per share: $4.87.
11.ROE: 16.5%.

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Recs

0

 (IPGP)

Avatar DocPhoton (85.82) Submitted: 7/07/08 2:06 PM : Outperform Start Price: $17.80 IPGP Score: -0.79

optics

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Recs

0

 (IPGP)

Avatar Kenuck (37.08) Submitted: 6/30/08 5:57 PM : Outperform Start Price: $18.89 IPGP Score: -4.55

New more efficient technology stealing market share from existing technology has potential to make this the leader in the long term. The introduction of old technology to fill service gaps makes this company even more compelling. The only real downside I see is these guys are fully integrated which requires capital up front and can take away from margins while growing the business. They can control quality and pricing but are also at risk if managment doesn't manage properly. Are in control of their own destiny with the technology..... just need it to catch on ..... particularly with that black hole the US DND.

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Recs

2

 (IPGP)

Avatar bfmaceio (99.24) Submitted: 6/28/08 9:11 PM : Outperform Start Price: $19.20 IPGP Score: 1.09

IPG Photonics manufactures high-performance fiber lasers and amplifiers for use in a wide range of markets, such as materials processing, advanced technologies, telecommunications and medical applications. Among the main costumers are Toyota, Nissan, BMW, Gillette, Mitsubishi, Toshiba, Hyundai, NASA, Boeing and Biolase.

The revenues have been growth aggressively since 2002, from $22.2 to $188.7 million, and are also very equilibrated among North America (28.2%), Asia and Australia (33.2%) and Europe (38.6%), which provides a good hedge against the US dollar depreciation seen in the last years. It is also a hedge against the slow rhythm of growth (if not recession) of the US economy, as we see nowadays.

In the other hand, these sales, when grouped by end-use, are more concentrated in Materials Processing (74.2%).

IPG has a good growth plan that includes displace existing laser and non-laser technologies, expand global reach and product portfolio and manufacture simple and more usable lasers to encourage mass industrial market adoption. Based in this plan, the company projects a huge 29% CAGR in sales to 2011, it means 177% (1.29^4) compared with the 2007 revenues. I believe that the growth in the net income will be much higher because of gains of scale.
Besides, using just common sense, the actual market valuation of $849.23 million (in June, 27th 2008) sounds very little to a company that is a global leader in the fiber laser market. Actually, IPG Photonics has a market share of about 60% of world sales
But, the high valuation shown in a P/E of 26.64 suggests that the market has already discounted a good part of this expected growth. Other not-so-good news are the operational loss in 2002 (-$21 Million) and 2003 (-$24.8 Million), but with skyrocketed results in the follow years, in millions: $4.0, $14.3, $38.3 and $48.3, in 2004, 05, 06 and 07, respectively.
I don’t know the reasons for the losses, maybe the slowdown in the US economy (in a time when the Company was less diversified in sales) or the Company hadn’t yet reached the breakeven point.
Bottom-line: a world leader (huge market power with 60% of world sales), aggressive and (more important) feasible growth plan, very good business momentum (shown in the growth of revenues in the last years) in a very promising market. The only con I see is the high P/E, but I think it worth.

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Wall Street

Results 1 - 8 of 8  

picks per page. CHANGE

Top
Pick		Member NameMember RatingStart
Date		CallTime FrameStart
Price		Stock
Gain		S&P
Gain		ScorePitch
TrackBreanMurray 94.49 06/17/08 Outperform NS $19.46-6.12%-6.36%+0.25
TrackFBR 90.04 10/16/07 Outperform NS $21.11-13.45%-16.97%+3.51
TrackBearStearns 90.67 09/28/07 Outperform NS $19.90-8.19%-16.12%+7.93
TrackLehmanBros 87.88 08/08/07 Outperform NS $19.25-5.09%-13.61%+8.52
TrackJimCramer 81.15 02/22/07 Underperform 3W $25.00-26.92%-11.91%+15.01
TrackJefferies 90.17 01/22/07 Outperform NS $26.00-29.73%-10.39%-19.34
TrackTWeisel < 20 01/22/07 Outperform NS $26.00-29.73%-10.39%-19.34
TrackNeedham < 20 01/22/07 Outperform NS $26.00-29.73%-10.39%-19.34

Results 1 - 8 of 8  

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