Kulicke and Soffa accepts Lemelson Capital's April 23rd, 2014 recommendation
Marlborough, Mass., August 27, 2014-Lemelson Capital Management, a private investment management firm, today commended the Board of Directors and management team of Kulicke and Soffa Industries, Inc. (NASDAQ: KLIC) for their favorable response to Lemelson Capital's April 23, 2014 letter to CEO Bruno Guilmart urging the company to initiate a share repurchase program. In an announcement this morning, Kulicke and Soffa said its Board of Directors has authorized a repurchase of up to $100 million of the company's common shares, effective immediately.
Lemelson Capital's original April 23 letter to Kulicke and Soffa management can be found here.
"The Board and management of Kulicke and Soffa should be commended for acting in the best interest of shareholders and initiating the tender offer announced today by the company," said Lemelson Capital Management Chief Investment Officer Emmanuel Lemelson. "The exchange between Lemelson Capital and Kulicke and Soffa management has been productive and we're delighted that Mr. Guilmart and the Kulicke and Soffa Board have decided to act on Lemelson Capital's recommendation for a large share repurchase program. Kulicke and Soffa is a stable, highly cash generative business that continues to be radically undervalued, and there is no better place for the company to allocate its capital than to the repurchase its shares," he said.
Lemelson Capital Management first announced its substantial long position in Kulicke and Soffa Industries on April 23, 2014. Lemelson Capital's stake in the company has appreciated some 27.2 percent through market close on August 26, 2014.
Disclosure: Lemelson Capital is currently long shares of KLIC for its clients.
Disclosure: The author is long KLIC.
The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it. The author has no business relationship with any company whose stock is mentioned in this article.