Needham Growth Conference Commentary for Covered Named: Part I - IVAC, MFLX & OCZ
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Price: $4.09 +10.54%
Rating Summary:
2 Buy, 5 Hold, 0 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
2 Buy, 5 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
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Needham Growth Conference Summary/ CES 2012 Thoughts: Trends In IT Hardware Part II
Analyst Richard Kugele's company specific commentary for covered names
Intevac (Nasdaq: IVAC): IVAC offered a fairly upbeat presentation to investors this week, with hope of receiving orders during 2Q/3Q on the HDD sputtering side and repeat solar orders during 2013. We believe the current drought of tool orders (and challenging 4Q/1Q) is already well-baked into the current stock price, leaving the name a potentially interesting 2H12/1H13 play on a recovering HDD industry. The final divestiture of its semi-cap equipment tool business is also a positive step and shows management is focused on its growth opportunities.
Multi-Fineline Electronix (Nasdaq: MFLX): MFLX preannounced fairly meaningful upside for F1Q and provided better than seasonal guidance for F2Q as the component constraints in Thailand following the flooding alleviated somewhat for OEMs of handsets and tablets. The stock rebounded strongly on the news, leaving us to do more work and see if consistency can return before recommending the name given the headwinds from Research In Motion (Nasdaq: RIMM).
OCZ Technology (NYSE: OCZ): In a packed room, CFO Art Knapp presented a general overview on the company, with fresh data from the earnings call on Monday. We believe that besides general optimism about the company and its prospects, the only incremental information was that working capital would be more closely managed in coming quarters (specifically regarding the strategic NAND buys that cost meaningful dollars in the quarter but represent a margin expansion opportunity in future quarters). We continue to believe the stock is a crowded short and one of our top picks for 2012.
Analyst Richard Kugele's company specific commentary for covered names
Intevac (Nasdaq: IVAC): IVAC offered a fairly upbeat presentation to investors this week, with hope of receiving orders during 2Q/3Q on the HDD sputtering side and repeat solar orders during 2013. We believe the current drought of tool orders (and challenging 4Q/1Q) is already well-baked into the current stock price, leaving the name a potentially interesting 2H12/1H13 play on a recovering HDD industry. The final divestiture of its semi-cap equipment tool business is also a positive step and shows management is focused on its growth opportunities.
Multi-Fineline Electronix (Nasdaq: MFLX): MFLX preannounced fairly meaningful upside for F1Q and provided better than seasonal guidance for F2Q as the component constraints in Thailand following the flooding alleviated somewhat for OEMs of handsets and tablets. The stock rebounded strongly on the news, leaving us to do more work and see if consistency can return before recommending the name given the headwinds from Research In Motion (Nasdaq: RIMM).
OCZ Technology (NYSE: OCZ): In a packed room, CFO Art Knapp presented a general overview on the company, with fresh data from the earnings call on Monday. We believe that besides general optimism about the company and its prospects, the only incremental information was that working capital would be more closely managed in coming quarters (specifically regarding the strategic NAND buys that cost meaningful dollars in the quarter but represent a margin expansion opportunity in future quarters). We continue to believe the stock is a crowded short and one of our top picks for 2012.
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