Formfactor (FORM) at 808 Million has roughly half of its market capitalization in cash! Is this a great value play or a company that is slowly dying?

The Pitch

FORM is a tech stock that I won’t even pretend to understand. From what I’ve gathered from analysts and others, it provides services to the semiconductor industry that are technologically superior, patented, and low cost. Basically, with new technology coming out in the future I don’t see the need for their services going away. Good thing this blog is titled “Adventures in Amateur Investing”, or else a skimpy pitch like this one could get me in trouble.

The Bottom Line:

Again, half of its market cap in cash and fell from $26 to $16 recently, which gives us a chance to profit from yet another market overreaction. While my understanding of the business is lacking, I’ve relied on others to lead me to a tech company with solid value.



Disclosure: I am long FORM @ $16.31. I am not a financial advisor and the above is solely my opinion, NOT advice. Do your own research and contact a financial professional for help if necessary. My opinions do not take into account your specific situations or needs.

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