B. Riley Asset Management Acquires Rights to Manage Dialectic Hedge Funds
- Press Release
#4 Ben Pang
Industry covered: Semiconductor-Equipment Manufacturing
Lam Research--investors were doubtful of continued share gains and earnings leverage, but LRCX met our expectations for continued share gain in high growth applications and to deliver solid profitability margins
Brooks Automation--we were skeptical of BRKS ability to transform operations and achieve sustained higher levels of profitability, but they proved me wrong!
Semiconductor-equipment stocks have been in a secular valuation decline for the last 10 years. However, I think the industry is on the cusp of higher capital intensity, which could finally mark an inflection point for higher earnings multiples. We think the lack of larger wafer size transition will be the primary catalyst for higher capital intensity.
Varian Semiconductor Equipment Associates--Overweight recommendation in August 2006, stock up 180% in ~1 year, investors were concerned that a large competitor would reverse share losses against VSEA. Our confidence in VSEA's product paid off and the competitor exited the segment in 2007.