Helix Investment Research
Long only, special situations, contrarian, growth

Pericom Semiconductor: Recovering Business & Cash Deployment To Drive Upside

From its historical financials, Pericom Semiconductor (NASDAQ:PSEM) is unlikely to inspire confidence in most investors. To be sure, the company consistently generates positive operating cash flow, but those figures have been volatile, and of more concern are the company's declining sales, which fell from over $166 million in fiscal 2011 to less than $130 million in fiscal 2013 (Pericom's fiscal year ends in June). However, amidst a global recovery in the semiconductor industry, Pericom is poised to break this trend. And with a truly pristine balance sheet, and a stock trading below book value, we see upside potential of 38% as Pericom returns to growth and makes a decision on its ample cash balances. Unless otherwise noted, the...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details