AmtechAmtech Systems Inc. (NASDAQ: ASYS) is a global producer of solar and semiconductor manufacturing and automation solutions.

Solar cell technology may only be one segment of the business, but the company’s diversification makes it interesting. Because it is engaged in both solar and semiconductor manufacturing processes, it faces less risk during market downturns in either of these industries.

Amtech’s revenue has fallen in 2019, due to increased trade tensions and associated tariffs. In its fiscal fourth quarter, the company reported revenue of $20.2 million, which was a decrease of 12.6% compared to the previous year. Despite this, the company managed to increase its cash equivalents to $53 million at the end of the quarter, compared to $49.8 million in the previous reporting period. This was partially due to a strong gross margin, which was reported at 42%.

Long term, the company plans to divest its solar business, hoping to focus on technology developments rather than manufacturing. Even if the company sells its solar assets, it will still have ties to the alternative energy industry through its other manufacturing and automation solutions. Divesting the solar business could potentially create an upside for investors who buy the stock today.

Amtech expects modest fiscal performance in 2020, due to ongoing trade concerns and tariffs. With a bargain price, this stock is worth considering in the fourth quarter. Its growth throughout 2019 shows momentum, and confidence could increase if a U.S.-China trade deal is finalized within the next few months.

Key Data:

  • 1 Year Price Growth: 51%
  • YTD Price Growth: 09%
  • 3 Month Price Growth: 88%

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