Member Info for chrisc32

I would be incredibly surprised to see the share price hanging around these levels. The update yesterday confirms that in order for the full year to be ahead if market expectations, then h2 earnings must have exceeded h1 earning, and may have even shown a profit even after the substantial depreciation of fixed assets that we see from Pure Wafer. H1 saw earnings before interest, tax, depreciation & amortisation of $2.9m. So we're pretty comfortable assuming we'll see around $6m EBITDA for the full year, possibly more. At these levels of earnings, the critical point is that it appears PUR can meet all debt repayment and interest obligations. So we're left with a company that will have repaid it's bank debt in 23 months time and existing asset-based debt in 35 months time, generating $6m (or £3.82m) per year in cash-flow and EBITDA, but with a market cap of around £6m? This is crazy-cheap IMO, and has multibagger written all over it. If we reach 1 week before 1st OBctober without the SP having risen appreciably from these levels, I'll be very surprised indeed. I think what may be holding the SP back is that investors and analysts need to understand that the heavy extent to which the depreciation of fixed assets impacts the reported earnings figures. At first glance this company looks like a train wreck from a P/E and debt perspective. It's only on closer examination that the underlying strength, growth and healthy cash generation/EBITDA becomes apparent. Trading at less than 2x EBITDA is a joke, especially given that tangible NAV exceeds the current Market cap by nearly 2 times. The company is priced to go bust, yet all my calculations suggest that debt repayments can be comfortably covered. The last point us that the depreciation of fixed assets must wind down at some point soon, at which point the strong operational performance will manifest itself in company earnings. A DYOR stock - but the must undervalued I can find.

Encouraging that the board are being communicative and that full year results are due out in a more timely manner. Above all, great to see confirmation that unaudited results on an EBITDA level are ahead of market expectations. Still bumping along the bottom at sub 5p (sub £6m market cap). Expecting to see EBITDA pushing $6m for the full year, which puts PUR on just about 1.5x EBITDA

http://www.semi.org/en/node/42186

Not so sure about the reason for the delay. However, it's a fairly sizable amount in the context of just 127m shares in issue. I suppose all we can be sure about is that someone has bought them and someone has sold them.

http://www.eetimes.com/electronics-news/4390679/Qualcomm-sees-28-nm-capacity-crunch-through-2012?pageNumber=1 "Qualcomm also trimmed the high end of its sales target for the fiscal year, which also closes in September. The company said it now expects sales for the year to be between $18.7 billion and $19.1 billion, down from a previously guided range of $18.7 billion to $19.7 billion. The new guidance would represent an improvement of 25 to 28 percent compared to fiscal 2011 sales of $14.96 billion." We know demand for Pure Wafer's reclaimed wafers is being driven by the demand for smartphones. Interesting to understand the scale of the demand we're seeing. Qualcomm's revenue growth of 25-28% for the fiscal year gives a good indication of the strength in the sector.

Thanks for the viewpoint, really looking forward to full year results when they arrive. Should be very good judging by the interim results and trading statement. I've been modelling the financials here, and provided selling prices have held up well for wafers, they should look pretty decent for the full year (removing the depreciation effect).

I've a question that someone might be able to help with ... I see from looking at past accounts that PUR have amortised government grants within their financial reporting. Does anyone know whether this grant is paid annually? Or has it all been received as a lump sum? Thanks!

Well, going by the articles last summer, it was anticipated that a production line producing a new breed of solar panel making use of nanotechnology lenses to up the electricity by up to 20 times might be up and running around the turn of this year. 18 months was the time frame stated. I'm invested on the basis of the core silicon wafer reclaim business. Digital devices containing silicon integrated chips should be on the up in aggregate, driven by smartphones and tablets. One of the beauties of PUR is that it is a way to play the market trend in general without picking a particular supplier. They have a global customer base of most of the leading silicon chip fabs. The possibility of an announcement that PUR have produced a new breed of solar panel is tantalising. But it's the $3m cash they generated from operations in 6 months to December ($6m annualised) that provides the investment case here. What's the market cap again? Sub £6m. They paid more than this for the US facility alone, and it's since be fitted with the same technology as at the Swansea plant (which is nearly twice the size). Yes, there's debt of course, but of the manageable kind. Some of this is finance lease-purchase agreements. So the kit is paying for itself at these record levels of productivity. Also a standard loan. All should be clear by 2015.

Seems steady enough to me at these levels, having retraced on the excellent update as many shares do. A couple of buys earlier through at 4.7p and now 4.74p to buy. Selling or buying in size never easy within the spread here.

Shares available at 4.7p, the price the SP was at before the very positive trading statement. Should hopefully see a bounce again from these levels.

Much better presented, and links to isite and Dutco sites. Much better STY, a much needed overhaul.

Current spread 4.76p v 4.83p. Reporting buys as sells

Just keep re-reading the half year results and the trading statement as if to reassure myself. But every way I look at it, the story stacks up. PURE WAFER are benefiting not only from the growth in the semiconductor market which is being fuelled by demand for hand held devices, but also (and most importantly IMO) from growth in market share in Asia and in the US. This is no mean feat, given that there are Asia-based reclaimers out there. What I believe this demonstrates is that PUR are delivering a quality of reclaim many other suppliers can not match, and meeting the more stringent requirements associated with 300mm etc. Looking back to the half year statement, this paragraph in particular stands out: "Pure Wafer continues to gain volumes from industry growth and increased market share in the Asian and US regions, as we continue to demonstrate our technology advancement, keeping abreast with the requirements of our blue chip and world leading customer base."

Good to see the net-buying of shares continue. Although some would say every trade is both a buy and a sell.

http://www.taipeitimes.com/News/biz/archives/2012/06/25/2003536169 The book-to-bill ratio for North America-based manufacturers of semiconductor equipment dropped for the second straight month last month, but the ratio remained at a healthy level of more than one — meaning that new order growth outpaced billings — the global semiconductor industry association SEMI said on Friday. The three-month average for global new orders rose 0.63 percent month-on-month to US$1.61 billion last month, its strongest level in 12 months. Billings increased 5.3 percent to US$1.54 billion last month from April’s US$1.46 billion. That brought the book-to-bill ratio to 1.05 last month, down from 1.1 in April. A book-to-bill ration of 1.05 means that US$105 worth of orders were received for every US$100 of products billed for the month. Since February, new orders have been growing faster than billings, bringing the ratio back to a healthy level of 1.01 percent, -having remained below one for since September 2010 amid weak demand. “Worldwide orders for new semiconductor equipment from North American-based manufacturers have continued to increase over the past year as chip makers add capacity and process technology to meet demand driven by mobile products, smart phones and tablets,” SEMI president and CEO Denny McGuirk said in a statement on Friday. “Bookings are at the highest levels since May 2011 and this is the fourth consecutive month that new orders have outpaced billings,” he added. That indicated that the outlook for the global semiconductor equipment market remained optimistic, SEMI said.

I've no idea to be honest as I'm quite new to this share. Been building a pretty decent stake as it looks to be a corker of an opportunity. Hoping that the current market cap of under £6m will be shown to be a nonsense in time. I have Pure as possibly generating £3.5 - 4m cash from operations in the forthcoming full year results. Certainly sets the mcap in context given that net assets are currently worth way more than the value that the market is attributing to this company. The only aspect we weren't updated on today was selling prices, so I'm assuming stable. We do know that Pure are continuing to make debt payments and meeting financial obligations etc.

That's after a very decent half year to December when PUR generated $3m cash from operations in 6 months. Significant undervaluation at the current very low market cap in my opinion. Targeting 20p+ per share in time.

News out - very positive and upbeat.

Got a way to go as yet over the medium term IMO. Definitely a share that's worthy of a bit of research time.

Whilst a look at the balance sheet right now shows a company with fairly significant debt, on a 1 to 2 year view it seems to me that the following is perfectly feasible: Revenues: $40m Gross margin: 35% Operating profit: $14m Admin expenses: $6m EBITDA: $8m (5m GBP at 1.6 USD/GBP) The latest half year results already show annualised revenues of nearly $36m, and a gross margin of over 30%. So it's possibly not too much growth to factor in? Such a position would put PUR on a future PE of 1 (or 1.5 once warrants taken account of). This assumes that depreciation of fixed assets curtails at some point - as it must do. The fixed assets have been depreciated significantly and will not of course depreciate to zero. I'm dreaming of the day that PUR are generating 5m GBP per year in cash and have paid off their debts in full. Getting shot of those interest payments would certainly be a burden lifted. The current repayment schedule sees the debt gone in 3 years. What market cap then? This could be a 50m GBP+ company in the making. It's been as high as 90m GBP in the past. Certainly the current mcap could be made to look exceedingly cheap. Pricing is key to the long term prospects here, as the price per wafer that fell through the floor in 2008/09 in the face of new competition and overcapacity of supply. Many companies exited the sector in 2009, but foreign competition seems to be still keeping a lid on industry-wide prices. Although we hear from PUR that they have managed to increase prices across their customer base. Hopefully demand for high quality 300mm silicon wafer reclaim will at some point exceed capacity to supply at which point further price increases would be highly likely. From recent company RNSs, it seems that the increasingly high specifications that FABs are demanding means their is a limited pool of suppliers able to meet these requirements. It seems that Pure Wafer are one of these which should put them in a strong position and probably is in part the reason for their market share gains in the USA and Asia. PUR have made great strides in reducing production costs that should reap benefits going forwards. To the downside, a strong slowdown in the semiconductor industry at large could put pressure on the company's finances again. On a risk v reward basis, I rate Pure Wafer as a strong buy, and will be adding again on Monday. i like the fact that they have two facilities in Wales in the US, and that their customer base is truly global. I also see PUR as a potential takeover target at the current low price, which is another good reason to buy or hold. But definitely DYOR and make your own investment decisions etc.