Beating Everybody to the Punch: SPIL, MVIS, GSM

Trends, Charts and Exclusive Opinion

Three SmallCaps that Aren’t Sitting Idle

SPIL: Solid Earnings in Asia Semiconductor Market

MVIS: PicoP Technology is the World’s First

GSM: Manufacturer of ‘Silicon Metal’ Moves to Make Revenues

First up this morning we have a ‘Watch Closely’ stock; Siliconware Precision Industries Company Limited (SPIL) currently trading in the $6.07 range. SPIL trades both on the NASDAQ and Taiwan Exchange (2325) and could be ‘a find’ in the days and months ahead. SPIL had declining revenues of 10.5% in its Q1 ’10 numbers. SPIL also posted a declining net income in Y-O-Y quarterly comparable, but did post a solid diluted EPS. I like earnings and I like that SPIL is really well-positioned in its marketshare.  

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Next up this morning we have Microvision Inc., (MVIS) http://www.mvis.com/ currently trading in the $3.29 range on a 3-Month average daily trading volume of 732,598 shares. MVIS has a 52-week high of $5.75 set on 10-12-09. With a $2.45 approximate spread between its current and high price, MVIS is a short-term (6 Mo) ‘Buy’ consideration for me. Here’s why: the Co’s PicoP Technology, the world’s first 720p laser pico projector demonstrator that fits in the palm of your hand. MVIS beat everybody to the punch on this one. MVIS makes and sells ultra-miniature projection display products and its May release of the 720p prototype pico projector outputs 15 lumens of brightness while still maintaining its compact, low profile form factor, very similar to Microvision’s current WVGA product. MVIS plans a commercial product version of a 720p HD PicoP display engine in the second half of 2011. Some details: Infinite focus, wide throw angle that offers an immersive visual experience, superior brightness uniformity, high optical efficiency resulting in low power requirements, a 5000:1 contrast ratio, and vivid colors of up to 200% greater than standard broadcast television.  

Finally this morning we have Globe Specialty Metals Inc., (GSM) http://www.glbsm.com/ currently trading in the $11.50 range on a 3-Month average daily trading volume of 497,800 shares. GSM has a 52-week high of $12.74 set on 04-29-10 with current trailing twelve month revenues of $407+ million and a positive, corresponding diluted EPS of +$0.40. I like those earnings. I also really like the fact that GSM has a niche outside of the ordinary ‘dig it out of the ground and get what the market will give’ thinking. GSM specializes in metallurgical grade silicon metal, which is used as a raw material in making silicone compounds, silicone chemical, aluminum, and steel manufacturers, as well as auto companies and their suppliers, ductile iron foundries, manufacturers of photovoltaic solar cells and computer chips, and concrete producers. GSM received a late May ‘outperform’ initial coverage from Oppenheimer following on the heels of its Q3 numbers: Net sales for the third quarter ended March 31, 2010 were up 4%, to $112.5 million, and shipments increased 7% to 47,684 MT, from its second quarter ended December 31, 2009 and (please take note) an increased demand for silicon metal and silicon-based alloys that caused GSM to run all its furnaces. GSM reopened its Selma, Alabama plant in January 2010 after idling it for eight months. It is now running at full capacity, but has not yet reached its normalized cost of production. GSM also reopened its Niagara Falls plant in November 2009 after it had been closed for more than five years and, due to certain start-up issues, the plant is currently operating at approximately 75% of capacity and at a higher than normalized cost of production. GSM, even a $1.25 approximately off its high, is a long-term (1 Yr) ‘Buy’ consideration for me.

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