Value Microcaps Motherboard

[whyme2005]

AEHR $4.92...PROFITABLE SEMI TEST EQUIPMENT COMPANY. Earnings next Thursday.

I believe AEHR could be a big winner in 2007. The stock is down primarily because of a downgrade and tax selling season.

The downgrade was highly criticized at the time because it was done prior to the company's last quarterly report (1Q 2007). The sell target was $5 and that's where we are now.

Ironically, when the company reported, it surprised the street with very good results. At that time AEHR was trading close to $8.

Take a look at the continuously improving financial results:

http://finance.yahoo.com/q/is?s=AEHR

Also observe AEHR's strong balance sheet featuring $1.4/share cash and ZERO longterm debt:

http://finance.yahoo.com/q/bs?s=AEHR

For 1Q 2007, AEHR posted net income of $557,000, or 7 cents a share, compared with a loss of $244,000, or 3 cents a share, a year ago. Sales totaled $7.1 million, up 54% from a year ago. Excluding stock-compensation expense of $163,000, the company earned $717,000, or 9 cents a share.

As a reference, in 2Q 2006 AEHR reported $5.8M in revenues and $166K net income or 2c/share.

Gary Larson, AEHR's vice president and chief financial officer, said in a statement "During the second quarter of fiscal 2007, we expect net sales and net income to be relatively similar to those of the first quarter of fiscal 2007,"

Shares gained 19 cents, or 2.65%, to $7.35 immediately after the 1Q 2007 earnings release.

Since then AEHR has slowly bled due to the after-effects of the downgrade and more recently tax selling.

If AEHR gets even close to its guidance it should beat the year-ago quarter handily. And with only 2M shares on the float, AEHR could literally explode to the $8+ trading range.

Do your own DD and you might agree with me that AEHR could be a big winner next week.


The only problem right now is that some brokerage houses are not allowing the purchase of AEHR shares for a few days to prevent manipulation since the float is so small. You have to call your broker and he/she will buy the stock for your at internet prices.


ABOUT AEHR (From Yahho Finance):

Headquartered in Fremont, California, Aehr Test Systems is a leading worldwide provider of systems for burning-in and testing DRAM and logic integrated circuits and has an installed base of more than 2,500 systems worldwide. Aehr Test has developed and introduced several innovative products, including the FOX(TM), MTX and MAX systems, and the DiePak® carrier. The FOX system is a full wafer contact test and burn-in system. The MTX system is a massively parallel test system designed to reduce the cost of memory testing by performing both test and burn-in on thousands of devices simultaneously. The MAX system can effectively burn-in and functionally test complex devices, such as digital signal processors, microprocessors, microcontrollers and systems-on-a-chip. The DiePak carrier is a reusable, temporary package that enables IC manufacturers to perform cost-effective final test and burn-in of bare die.