Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

FormFactor Coming Into Shape

In early December of 2013 I wrote that FormFactor (NASDAQ:FORM) looked like an appealing risk-reward trade for more aggressive investors, as the market seemed to be very down on the prospects for the company to grow its SoC probe card business and improve its margins. Since then, the shares are up over 50%, with a big run over the past few weeks driven by improved guidance for the second quarter. There remain valid ongoing concerns as to whether FormFactor can improve margins enough to generate attractive long-term cash flow streams, but technology transitions in memory and logic could make the next couple of years very interesting for FormFactor.

How Much Does A Good Quarter Matter?

FormFactor's shares have...

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