Friday, March 2, 2012

Tower Semiconductor TSEM

This little known Israeli company is a trendsetter, it offers large design firms an option, not to own their own fabrication facility. The company is growing well annually but shares are unnaturally depressed due to its location (high risk), and it has a complicated share structure. Shares trade at around $0.70.

What the Market is Missing
The company is a turnaround story. The CEO is doing all the right things. Israel is not a high risk area, that's US investors being silly. They own fabrication facilities in the USA, Israel and Japan. This area, the outsourcing of fabrication is a growth area according to Paul McWilliams of Nextinning a respected research company.

My View
The company will grow to over $1bn sales in 2012/13 and the shares will grow to $1.50 doubling

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