Ian Ainsworth
Dalsa Corp
DSA-T
DON'T BUY
Aug 04, 2010
In some very interesting markets, optical/optical devices in image processing but growth has slowed dramatically. Getting benefit of a recovery in the semiconductor cycle but doesn't see growth going back up to 20%-30%. Probably pay out 30% of their earnings, which suggests they don't have use of their cash.
Have had some problems, but are seen as a leader in their sector. Probably has good potential to rise from here. Six months or a year from now the stock could be up.
This is a long term holding. One of only 2 plants in the world that are doing mems/high voltage application. When they expand the plant 10%, thinks it will drop $1.70 in earnings but should grow to $2 while analysts predict $1.
Ranks about 1/3 in the top half of their database. Overall sales growth up 20% and earnings up 86%. Earnings decline is forcast for '06. Cyclical. Caution.
Looks like it is finally turning itself around. Current earnings estimates is $.93 in Dec/10. A further 22% is forecast to $1.13 in 2011. Trading at 10X PE.
Specialty is cameras to catch images and particularly moving towards infrared images for weather satellites as well as for manufacturing processes. Earnings estimates growing from $1.01 to $1.18, a 17% earnings growth for 2011 and 23% into 2012. 12X PE. ROE of about 13%. Cheap