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Technology Stocks
Align-Rite Int'l (MASK) Undervalued compared to PLAB DPMI
An SI Board Since September 1996
Posts SubjectMarks Bans Symbol
388 6 0 PLAB
Emcee:  Christopher Brainard Type:  Unmoderated
Align-Rite Int'l (MASK) is in the semiconductor photomask business.
Only other listed companies are Photronics (PLAB) and DuPont Photomasks (DPMI).
The semiconductor photomask companies have been beaten down along with the rest of
the semiconductor companies. Although the business conditions in the photomask
business seems to be in good shape. Demand for photomasks, which are basicly the
blue prints needed for the creation of a new integrated circuit, should continue to grow
as more and new uses of semiconductors are developed. Earnings are still growing and
forecasts of the future are still bright. Why then is Align-Rite selling at only 8 times trailing
12 months earnings while Photronics sells at 15 times and Dupont Photomasks sells at
13 times earnings. Align-Rite is the smallest of the three companies, but a 40% discount
to its larger brothers seem too extreme.

Estimates of fiscal year 1997 ending Mar-97 are $1.25.
Assuming a PE ratio of 12.5 would lead to a stock price of $15.625.
This is a 50% gain from todays price of $10.00 for MASK.

Anyone out there own or follow this stock or industry?
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ReplyMessage PreviewFromRecsPosted
388 Hey Steve. I'm long both MASK and PLAB - but my PLAB has a basis of around Joe Dancy-5/13/2000
387 Haven't heard a peep about the deal closing since the conference call (&quoArtslaw-3/16/2000
386 what's going on with this stock it's asian dealings looked promisin, soronnisi-3/16/2000
385 Any word on when the deal closes?Bookdon-3/16/2000
384 That's correct--go play the arbitrage! Steve (who already has!)Artslaw-2/29/2000
383 @Merger PLAB @40 ===> MASK @34? zwolff-2/29/2000
382 I took a small arb position on the spread just for fun. Bot 1177 MASK and shorKFBLY-2/14/2000
381 It's still trading at a 10-15% discount to PLAB. That seems large if the deCarl R.-2/12/2000
380 In their conference call they indicated a closing this quarter.Doug Hughes-2/12/2000
379 I think it was originally scheduled for the end of February, and I don't kCarl R.-2/9/2000
378 When is the deal supposed to close?Doug Skrypek-2/9/2000
377 You could short PLAB and go long MASK, I suppose. Me, I'm just long MASK soCarl R.-1/22/2000
376 Carl & others - The gap in price between MASK and PLAB is an aribtrage oppoJoe Dancy-1/22/2000
375 I noticed that last week MASK closed the gap a bit, so it would appear that aftCarl R.-1/17/2000
374 Sorry, I really can't. maybe others know more than I ......my info is not Gary G. Wallrap-1/17/2000
373 Can you give us a synopsis?Bookdon-1/17/2000
372 PLAB got a nice recommendation today on CNBC Analysts Show. They also mentioneGary G. Wallrap-1/17/2000
371 Well Tom, I did just add another chunk at 18 5/8. I think that the deal will uCarl R.-1/11/2000
370 My concern is that the longer this drags out, the more that can go wrong. MASK Bookdon-1/10/2000
369 I did just buy a few more shares under 20 recently, and almost added more todayCarl R.-1/10/2000
368 Merger agreement amended: biz.yahoo.com At .85 shares of PLAB, MASK is worth $Thomas DeGagne-1/10/2000
367 Thanks. Carl Carl R.-12/22/1999
366 I'll give you the cliff notes version. The conversion rate adjusts to givespiny norman-12/22/1999
365 Really. I didn't know that. I never got around to looking at the actual terCarl R.-12/22/1999
364 Carl, Sounds reasonable, Another possibility is that if plab goes above the hspiny norman-12/22/1999
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