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KLIC - Kulicke and Soffa Industries


mikazo

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  • 7 months later...

recent VIC write up

Ultimately, the misconception about technology risk is based on the false assumption that larger nodes will be discontinued and wire bonding will become obsolete. This is eminently false, with the reality being that smaller chip sizes are more expensive to produce, with no reason to be implemented where it’s not needed – to reiterate management’s parable, “why would you put a $17 processing chip in an otherwise $5 alarm clock?”. Additionally, with natural IC unit growth over time, combined with trends, such as “internet of everything”, the amount of “simple” semiconductor chips in demand should continue to increase at a small but steady rate over the long term.
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  • 10 months later...

KLIC is supercyclical and it usually goes really low when cycle goes against it. If you can catch it at a low, you can make multi-X. But it can go much lower than you usually expect. Good luck. I am not playing this field anymore - last time I did it was something like 199X-2002 or so. ;)

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Thanks for the warning, Jurgis. It is good to learn from ones own mistakes but almost as valuable to learn from others'. I don't know a lot about the semiconducting industry so I'd prefer to buy at a level where I don't need to. Not sure if we're there yet, but I figure it can't be too far off with all that cash. That said, they could return more to shareholders. 25m is measly.

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  • 1 month later...

Anyone getting interested? They just reduced Q4 guidance to revenue around 100-110m (but they get a tax benefit of 20m). Marketcap 686m, NCAV of 580m. I don't know too much about the company nor the industry, so I'd like to see some insider buying or increased share buyback, but just thought I wanted to bump.

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