Manufacturing Integration Technology Profit Guidance:Should you be concerned?
Disclaimer:I am vested in this stock so opinion will be biased.
Manufacturing Integration Technology, a semiconductor/solar equipment and contract equipment manufacturer just issued a profit guidance for the first half of 2013. The magnitude of the loss is unknown, that spooked some of the traders who sold at a low of 7.3 cents.
The highly cyclical semiconductor equipment industry has been in doldrums since the dot com days. Even though this company holds quite a lot of cash, 6.3 cents as of 31Dec 2012 and little debt,its stock price has fallen further over the years. It has plans to move to a new site at Yishun which will deplete some cash due to a loan of 6 million plus being taken. However, it will save some rental costs.
Semiconductor industry association is predicting a pickup in growth of semiconductor equipment sales in 2014. Solar industry is also picking up after bankruptcy of several big players. As long as the company controls its cost well, it can ride on the tailwind.
This net-net stock has the potential to rise from ashes again.
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