Optical materials supplier is expensive

Executive Broadcasts

Latest Broadcasts

Stockhouse Inc.

STKH

Internet/Technology

URANIUM NORTH RESOURCES CORP

V.UNR

BASIC MATERIALS - METALS & MINING

Petro Vista Energy Corp

V.PTV

BASIC MATERIALS - ENERGY

TapImmune Inc.

TPIM

Healthcare

Mexivada Mining Corp.

V.MNV

Natural Resources

Timmins Gold Corp

V.TMM

Basic Materials - Metals & Mining

Visit the Executive Broadcast Center

INVESTOR MARKETPLACE

An excellent place to start your search for new investments!

add to favorites

print email

Optical materials supplier is expensive

6/2/2008 4:47:35 PM | From the news desk of 24/7 Wall St.

589 Reads | 1 Comments

Rate this

clarity
3

clarity : 3
Rate this:

overall quality
3 overall quality : 3
Average quality rating by the Stockhouse community.

credibility
3

credibility : 3
Rate this:

usefulness
3

usefulness : 3
Rate this:

Analyst downgrade and slow-growing core business are areas of worry.

II-VI Inc. (NASDAQ: IIVI, Stock Forum) got a kick upstairs this week. It was added to the S&P SmallCap 600. That ought to give it some extra visibility and some more daily volume.

The firm makes materials for precision use in industrial, medical, military, security, and aerospace applications. That includes infrared, optics, and thermo-electric coolers. In some ways, IIVI may be in too many businesses, or at least it has a lot on its plate.

IIVI got itself downgraded by Needham recently. The last quarter was OK, but Wall

Street clearly expected more. Revenue went to $80.1 million, up from $64.8 million in the year-ago period. Income from operations went from $10 million to $13.4 million.

What the company really tried to sell hard when it put out earnings was its backlog of orders, which went up 44% to a record $93.7 billion. It does not seem to be a hefty amount given what the company brings in as revenue, but IVII thought it was good enough to promote.

IIVI has a real set of weaknesses for anyone willing to dig into the numbers. The firm's largest division, Infrared Optics, is growing more slowly than the company as a whole. The smallest operation, Military & Materials, is growing fastest.

Slow growth in a company's core business is not usually a great thing. At over $39,

IIVI trades near the top of its range. That makes it expensive.

ABOUT THE AUTHOR

From the news desk of 24/7 Wall St.

This report was prepared by 24/7 Wall St., LLC exclusively for Stockhouse.

Stockhouse Conflict and Disclosure Policy:

Stockgroup Media Inc., owners and operators of Stockhouse.ca/com, has established rules to ensure that there is no appearance of impropriety on the part of any Stockhouse writers who discuss or name individual public companies in the content published on the Stockhouse websites. The content of Stockhouse Editorial articles are the opinion of the writer and any reliance on the content of these articles shall be at your sole risk.

Stockhouse Editorial writers may own, buy, or sell shares in public companies mentioned in their articles. Please be advised that a conflict may exist and that any investment decisions you make are your own responsibility. Additionally, our Editorial writers are not registered investment advisors. You should not make any kind of investment decision in relation to these articles or stocks discussed in them without first obtaining independent investment advice from a registered investment advisor.

Facts relied upon by our Editorial writers in arriving at their opinions are generally provided by the subject companies or gathered by our Editorial writers from other public and/or private sources. These facts may be in error and if so, the opinions of our Editorial writers may be materially different.

Rules applying to Stockhouse Editorial Writers

Stockhouse Editorial writers may own stock of any company they cover, but at the bottom of the article or within the article they must clearly and prominently state their ownership position in the company.

Stockhouse Editorial writers cannot solicit, accept, or agree to receive anything of value given or paid with the intent of influencing their editorial articles published on Stockhouse.

Stockhouse Editorial writers are not permitted to write articles that attempt to influence or benefit persons connected to the writer such as family or friends, , except where disclosure is made in the same way as if the writer him/herself owns stock.

Stockhouse notifies each Editorial writer about these rules but in case of a possible breach of our rules, we may not be in a position to find out or investigate the facts. We rely on the integrity of our writers to ensure that our rules are followed.

FREE REPORTS