Snippets from ASM Tech right issue offer document.
The most interesting information is their RnD tieup with iIISC bangalore. There are 48 dedicated employees working in iISC for research and development in semiconductor space.
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See, claims of 6-7x in one year is not at all one of uniform growth.
This has almost shown no activity till the semi-con PLI announce.
A mistaken identity case simply, anything remotely related to the next mega-trend is showing how crazy a bull market run can get.
Applied materials is well represented in India through its direct offices and development centers.
Nobody is going to be doing RnD in semi-con here, we have almost zero production, this is not a theoretical subject.
Yes, IISc is the top-notch institute and they can do almost anything very well.
But we need to focus on semi-con manufacturing, and commercial operations of such.
ASM tech is working on so many good things, main seems to be fixtures related to mechanical manufacturing.
Fundamentals simply do not back this, they are struggling to even get to 2013 levels!
Yes, Applied materials can give some more business to the company, Yes, software dev trend is also strong. But semi-con fabrication unit has nothing directly to do with software development.
A rights-issue at this juncture can mean they simply want to pay the old depressed price and get instant mega gains.
Disc: not invested, simply trying to plainly state what looks like speculation overdone.
Worked in semi-con industry (ASML company), wrote software for silicon chip ‘expose’ part movement of their machine (most critical step), colleague was from IISc, a PhD in heat-transfer, not in semi-con.
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Appreciate your expert views @vikas_sinha.
Iam not an expert and highly biased here and not recommending anyone to buy this stock at these higher prices myself have been bought at way lower levels.
Semi. Org is a US based organization for semiconductor industry players. ASM tech is a member here and what does the organisation website says about ASM tech can see here.
https://www.semi.org/en/resources/member-directory/asm-technologies-ltd
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Thanks for your insights on this Subject sir 
Sir as you have yourself worked in semi conductor Industry , Can you plz elaborate more on components like design and development of System and Sub Systems of PVD, CVD, RTP, Etch, CMP and Inspection tools.
Cause this is what is mentioned by company on their website about what it does .
The very first investor presentation from ASM tech.
Hopefully looking forward for a con call.
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Would not like to hi-jack this thread, I know very little beyond a small but most critical part of the manufacture chain.
Have replied here instead, so more people can share:
PS: latest presentation has no mention of applied materials
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Thanks for explaining it In-Depth sir
Being a small player how can we expect this company to reveal the name of their major client. In fact they have not disclosed anything related to any of their clients. You can check credit rating reports you will find the name.
It is there in old ratings and disappeared in latest rating. So rating agency knows/disclose more than company?
The company never used to disclose anything right.
We have discussed it here and taken up with promoter during AGM.
This company never disclosed much details to invstor community but having said this I have no doubt that this company is managed well and always kept high corporate governance standards.
- “Fundamentals simply do not back this, they are struggling to even get to 2013 levels”
In 2014 they divested their software enterprise division and started focusing only EnggRnD segment. The entire prceeds being used for one time special dividend and debt clearance.
- “Instant mega gains from current share price appreciation through right issue”
Definitely it is not, company paid out 4-5 cr as dividend alone in last one year. And this company earlier proposed to raise 15 cr, now they are actually raising 11.5 cr.
I wanted to also point out that this company aquired semcon India at book value (13 cr) without paying any premium. And done various investments in the past and continue to pay hefty dividend. We need to read the semcon press release about this divestment.
Am not advocating any buy at these expensive valuation but this is not just another bull market stock, that is very evident from the facts we discussed through out this thread.
Of course there are negatives other than expensive valuations , like less disclosures and transparency from the company side regarding business prospects.
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What the objective of the rights issue ? Who can participate in this ? Do you know more details ?
I can see they had a meeting on 14th Jan.
Workig capital.
Existing share holders can apply for rights.
Other details will be shared later by company.
Thanks
One hand giving dividend (not tax efficient ) other hand again raising funds , what are your views ?
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Applied materials also does some research with IISC bangalore.
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MMI Cover Story - Jan-Feb MMI (2).pdf (1.9 MB)
This is a recent article from RV forms founder.
Nikhil Rabindra heading the smartfix 4.0 is key take away for me, this indicates the focus of the company to scale up this segment.
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Intresting details updated in the company website regarding their semiconductor industry capabilities.
Please have a look & share your feedback.
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Love this sentence - ASM specializes in the Design and Value Engineering, Complex Prototyping, Competitive Manufacturing in the capital process equipment for Semiconductor, Solar and Display verticals.
Now if ASM’s management convinces Dalal Street that this is a critical growth area for the company, and that it has the capabilities to rapidly grow revenue in this segment, then shareholders would applaud!
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Code of conduct violation reported to exchanges by a VP of the company.
Seems like he sold 500 shares during the prohibition period. He is not belonging to promoter category & company fined a Rs10k to him as a penalty.
Small in number but serious issue.
Hope the promoter take necessary actions not to repeat such activities by any of the company employee. I have mailed to promoter and expressed my concern in this regard.
Note : This is for keeping everyone in loop regarding this negative event.
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