AXT Inc (AXTI)

[bowonwing]

AXT has five joint venture operations in China for the raw materials required by AXT's compound semiconductor substrates.
The five joint ventures are:

Beijing Ji Ya Semiconductor Co. Ltd.
Producer of 4N Ga. AXT ownership- 46%

Nanjin Jin Mei Gallium Co. Ltd.
Producer of 6N & 7N Ga, B2O3. -83%

Xilingol Tongli Germanium Co. Ltd.
Producer of Ge. -25%

Emeishan Jia Mei High Purity Materials Co. Ltd.
Produce of 4N, 6N and 7N Arsenic- 25%

Beijing Bo Yu Seniconductor Vessel Craftwork Technology
Producer of pBN crucibles, parts for MBE use. -70%.

Through these joint ventures, AXT manufactures and sells critical materials and parts, while reducing dependency on other suppliers of raw materials in the open market. This affords AXT the price and volume stability unavailable on the open market. In addition, AXT is a majority owner in three of the key ventures, which affords AXT board-level control and vertical intergation. AXT has critical manufacturing processes in China. See company web site for further information.

I am an individual investor. I bought AXTI in May, 2007. I believe AXT is a turn around story with very good days ahead.

Est. growth for 2007- 206%, for 2008- 29%. Est. revenue sales growth for 2008 is 24% (source Yahoo finance). Reuters Outperform rating, 4 of 4, as of June 28, 2007.

I came across AXT because Essex Investment Management Company (AMG Essex Small/Micro Cap Growth Fund) took an initial position in AXT between 1/1/07 and 3/31/07 of 1 million shares ($4.82M) at a price somewhere between $4.18 and $4.78. At 7/3/07 close of $4.43, much upside price potential.
During the same time peroid Institutional ownership in AXT increased by 2.63M shares, out of 29.89M shares outstanding, about +9%. (Sources www.Managersinvest.com and www.MoneyCentral.com).

Next earnings report for AXT is 08/02/2007.

The only question I have is long-term growth for 2009 to 2013. So far, neither Yahoo or Reuters have a long-term growth estimate for AXT. Does anyone have this information? Thank you.

Good luck to AXT and good investing to all.