Replies to post #96818 on Langlui's Big Board and Options Plays

[Rawnoc]

INTT = Huge turnaround play heading for double digits IMO.

INTT swung deep into profitability of +.11 EPS last Q.
I'm expecting up to triple that next Q. Here's why:

(1) Conference call noted bookings one Q = sales the next.
Bookings end Q1 = $14 million.
Sales of $14 million = +200% YOY jump and 46.9% sequential.

(2) CC notes indicate:
"to be conservative" -- 35% material cost + 5% sales comission = 40%
"theoretically 60% of incremental revenue drops to the bottom line"
Doesn't expect SG&A to go over $4 million per Q for rest of year.
Do the math -- realistic +.33 EPS pre-tax or more.

(3) +.33 EPS annualized = $1.32 per share which is just insane for a stock price this cheap.
INTT could run wild into the double digits per share on earnings and/or pre-announcement of earnings.
$10 to $15 coming IMO and well over $20+ very possible.

(4) Here's an article forecasting +.31 EPS: http://seekingalpha.com/article/204847-intest-earnings-conference-call-confirms-positive-view

(5) 72 year old chairman has a stock trading program for his retirement that refuses to sell any shares under $8.00 per share before even a portion of them can be sold then with requirements of higher share prices for more sales:
http://finance.yahoo.com/news/inTEST-Corporation-Executive-prnews-2524294056.html?x=0&.v=1

(6) The industry itself is going absolutely nuts. What's in store for INTT for Q3 and beyond? .50 EPS quarters or a $2 annualized pace? Pick whatever fair PE ratio you can dream of and you get a massive turn from here.

Caught with Their Chips Down
A worldwide shortage of key components is squeezing bottom lines
http://www.businessweek.com/archives/2000/b3683086.arc.htm

Here is an EE Times article that indicates that Samsung may have as much as a 50% growth in IC sales this year and is spending $9.6B on semiconductor capital.
http://www.eetimes.com/news/latest/showArticle.jhtml;jsessionid=UUPFRW30GRTMRQE1GHRSKH4ATMY32JVN?articleID=225200502

Update: LEDs in short supply as market booms
http://www.eetimes.com/showArticle.jhtml;jsessionid=UUPFRW30GRTMRQE1GHRSKH4ATMY32JVN?articleID=224900102

Analog vendors turning away business
http://www.eetimes.com/showArticle.jhtml;jsessionid=UUPFRW30GRTMRQE1GHRSKH4ATMY32JVN?articleID=224700545

Here is an interesting interview on semiconductor demand:
http://www.cnbc.com/id/15840232/?video=1512561683&play=1 <~~~ Biggest fundamental jump in demand not seen since the mid-1990s!!!

Semiconductor Equipment Spending To Double In 2010
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=51130928