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Parry Pasricha

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  • Kulicke & Soffa - A Good Business At A Great Price [View article]
    Hi Will, 2010 was the year they first introduced their copper bonding line of products. Industry cyclicality was also involved. The strong cash position, free cash flow generation ability of the business, and low level of competition in a niche market make me feel pretty safe about this holding.

    Also just updated my blog with some new ideas if you're interested.
    Apr 16 01:53 AM | Likes Like |Link to Comment
  • Kulicke & Soffa - A Good Business At A Great Price [View article]
    Hey Lance, I just submitted an analysis on Dean Foods. They recently spun out their high growth business WWAV, and on a stand alone basis appear quite attractive. Hopefully it'lll be approved soon, alternatively check out my blog its on there.

    Always looking for new ideas so please share if you come across something interesting!
    Mar 5 04:12 AM | Likes Like |Link to Comment
  • Kulicke & Soffa - A Good Business At A Great Price [View article]
    Hey Jeff, I've only come across the guidance for the March quarter of 90-100mil vs. ~150mil same quarter last year. They also guided to 43-47mil in fixed costs and 90-100mil as a comfortable break-even. I'm not too worried about the cyclical nature of the business as it is really what has created this opportunity. If management was expecting to earn $2/sh every year, well then you would have to be utterly stupid to not the buy the stock. The strong balance sheet, high cash, low industry competition, and broad shift to copper wire bonding is what makes me comfortable with this investment in the long run. Even if you expected revenues to decline by same rate as Q2 guidance, the company will still make ~40mil, CF ~50mil for the year. Not bad for a 300mil enterprise value and in the tail-end of the cycle.

    I haven't thought about buying more at this level, maybe if the stock gets materially cheaper by ~20%, I will definitely consider it and reassess the company's future.

    As I mentioned, I'm still learning more about the company/industry so thank you for your question!
    Feb 27 03:02 AM | Likes Like |Link to Comment
  • Kulicke & Soffa - A Good Business At A Great Price [View article]
    Keithrez: Luckily I wasn't investing in the 08 blow up but I'm sure a lot of investors were blindsided with risks they never expected. On the investment front, selling puts is probably a safe investment with the company having $6.50 in cash, but you do limit your upside if the management does find good use for the cash.

    I haven't been following this company for a long time so I will continue to monitor earnings and industry updates. If you come across anything relevant, please send it my way.

    I'm still baffled by the fact that management is not repurchasing shares and there is no insider purchasing.

    Johnsou: I would highly recommend reading some investment classics by Ben Graham & Phillip Fisher. I used to trade based on technicals, thin air, business news, but investing makes a lot more sense when you start thinking of buying shares as the same as buying the entire business. There are tons of easy to understand and cheap businesses out there!
    Feb 25 03:38 AM | 1 Like Like |Link to Comment
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