Three SmallCaps Making Bold Moves
ISYS: Installs Satellite System in the Ukraine
SIMO: Semiconductor Co Undervalued at the Moment
KLIC: Bookkeeping Move ‘Deleverages the Organization’
First up this morning we have Integral Systems Inc., (ISYS) http://www.integ.com/ an S&P SmallCap 600 company. ISYS is currently trading in the $6.80 range with a 3-Month average daily trading volume of 108,450 shares. ISYS has a 52-week high of $10.25 set on 04-08-10 with current trailing twelve month revenues of $156+ million. ISYS builds satellite ground systems, and other communications and networking equipment for satellite command and control, integration and test, data processing, signals analysis, interference detection and geolocation, and flight simulation in the United States and internationally. As of September 25, 2009, ISYS provided ground systems for approximately 200 various satellite missions for communications, science, meteorology, and earth resource applications. Late last month ISYS had two pieces of good news; a new CFO (Christopher B. Roberts) came on board and the Co completed the first installation of its GeoMon regulatory solution, an integrated package of satellite spectrum monitoring and geolocation system, for the Ukrainian State Centre of Radio-Frequencies and obtained official site acceptance. This project was delivered in cooperation with ARD-Telecom, a leading engineering and integration company for broadcast, wireless and Satcom solutions in Ukraine. The system monitors carrier signals from satellites received on the Ukrainian territory in C- and Ku-bands and provides signal characterization and Geolocation capabilities. The GeoMon product is particularly suited for Regulators and Government agencies to police the usage of satellite frequency spectrums. ISYS is in a growth mode and at approximately $3.50 off its high, is a short-term (6 Mo) ‘Buy’ consideration for me. For even more insight on ISYS, you should read my colleague James Brumley’s piece today.
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Next up this morning we have Silicon Motion Technology Corporation (SIMO) http://www.siliconmotion.com/ currently trading in the $4.48 range on a 3-Month average daily trading volume of 300,217 shares. SIMO has a 52-week high of $6.50 set on 04-16-10 with current trailing twelve month revenues of $93+ million. SIMO designs, develops, markets, and supplies semiconductor solutions for the multimedia consumer electronics market. The company offers mobile storage line of products, which include microcontrollers used in NAND flash memory storage products, such as flash memory cards, USB flash drives, SSDs, embedded flash applications, and card readers. It sells products through its direct sales force and distributors in Canada, China, Europe, Japan, Korea, Singapore, Taiwan, and the U.S. SIMO is headquartered in Jhubei City, Taiwan and has close access to the hundreds of clients and semiconductor companies located there. At $2 off its high, SIMO is also a short-term ‘Buy’ consideration for me.
Finally this morning we have Kulicke & Soffa Industries Inc., (KLIC) http://www.kns.com/ currently trading in the $7.32 range. KLIC has a 52-week high of $9.58 set on 04-14-10 with current trailing twelve month revenues of $444+ million and a positive, corresponding diluted EPS of $0.47. I like those earnings. KLIC is also in the semiconductor business and makes and sells capital equipment and expendable tools, as well as services, maintains, repairs, and upgrades equipment, used to assemble semiconductor devices. KLIC operates in two segments, Equipment and Expendable Tools. The Equipment segment manufactures and sells a line of ball bonders, heavy wire wedge bonders, and die bonders. Ball bonders are used to connect very fine wires, primarily made of gold or copper, between the bond pads of the semiconductor device or die, and the leads on its package. Heavy wire wedge bonders are used in the power semiconductor and automotive power module markets. Die bonders are used to attach a die to the substrate or lead frame, which will house the semiconductor device. I wrote on KLIC last year and gave them a ‘Buy’ consideration for me. I’m sticking with that. KLIC management has been and is doing some bookkeeping house-cleaning that has really benefitted the balance sheet and shareholders. Last Thursday KLIC announced the completed redemption of its remaining outstanding 1.0% Convertible Subordinated Notes due June 30, 2010 at par value. The aggregate principal amount of the notes redeemed was $48,964,000. There were 3,813,037 common shares underlying these redeemed notes, which will no longer be included in the Company’s fully diluted share count. Beginning in Q4 the Co expects this note redemption will reduce its fully diluted shares for purposes of determining quarterly earnings per share by approximately 5%. No common shares were issued in connection with the redemption of the notes. Scott Kulicke, CEO, stated, “This marks a significant step toward our long-term goal to deleverage the organization.” That’s the stuff Scott. At the conclusion of this transaction, KLIC’s total debt outstanding was $110 million maturing on June 1, 2012.
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Disclosure: No position