Camtek: High Growth, Low Debt Semi Smallcap (CAMT)

 |  Includes: CAMT, ORBK
by: Shlomo Greenberg

I see that Camtek Ltd. (Nasdaq: CAMT), the competitor of Orbotech (Nasdaq: ORBK), has risen more than 60% since the beginning of 2006. A stock with a performance like that is worth investigating further.

Two facts emerged from my study of the material. One is that Camtek has succeeded in penetrating the semiconductor manufacturing kingdom in the East. The moment that the company began supplying products to Toshiba and South Korean companies was an important stage that should be taken into consideration.

The second fact that became clear to me, as a layman to its industry, was that the company also develops and manufactures printed circuit boards, similar to those manufactured by Eltek (Nasdaq: ELTK). Of course, the analysts have yet to discover Camtek, and this is unfortunate as I would have been happy to get a bit more feedback at the current level, for if the stock continues to perform as it has done to date, the analysts will definitely wake up and begin covering it, by which time it will be too expensive.

From sales of $22.6 million in 2002, Camtek has progressed to annualized sales of $79 million in the first quarter of 2006 -- a 350% jump in three years. This is quite untypical for companies of this type, unless they have excellent products and an excellent management.

Camtek has cash, relatively low debt, and given the expected developments in the semiconductor field in future years, there is no reason why it shouldn’t go a long way.

Published originally by Globes [online], Israel business news -
© Copyright of Globes Publisher Itonut (1983) Ltd. 2006. Republished on Seeking Alpha with full permission.