This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Lemelson Capital Management Announces Stake In Kulicke And Soffa Industries, Delivers Letter To Management And Board Members Urging Immediate Share Repurchase

SOUTHBOROUGH, Mass., April 22, 2014 /PRNewswire/ -- Lemelson Capital Management, LLC, a private investment manager, today announced that it has taken a significant equity position in Kulicke & Soffa Industries (NASDAQ: KLIC), a global leader in the design and manufacture of semiconductor and LED assembly equipment.

Lemelson Capital's acquisition reflects the firm's view that shares of the company remain dramatically undervalued. 

Lemelson Capital also announced today that it is urging K&S to initiate a share repurchase plan and has delivered the following letter to the company's management team, board of directors and other stakeholders.

April 22, 2014

Mr. Bruno Guilmart  President and Chief Executive Officer K&S Corporate Headquarters23A Serangoon North Ave 5 #01-01 Singapore 554369

Dear Bruno,

Congratulations on what can only be described as first-rate execution since taking over as CEO of Kulicke and Soffa Industries in 2010. 

The firm's focus on transitioning to copper wire bonding proved timely while your and Jonathan's operational acumen appear to have contributed significantly to K & S's sizeable war chest of approximately $556 million and its near flawless balance sheet.

Additionally, your leadership team deserves much credit for achieving an important shift in corporate culture that has fueled higher employee morale while lowering turnover.

After following your progress over the years, Lemelson Capital on behalf of its clients has picked up some 368,429 shares over the last 14 months, increasing the positional size some 65 percent since YE 2013 alone, which is indicative of a firm conviction that the market continues to radically under-value the company and its future prospects. 

Lemelson Capital intends to continue buying on behalf of its clients.

As you know, cash and cash equivalents now represent approximately 60 percent of the company's market capitalization.  The wedge bonder business remains undervalued on the balance sheet and the flexible operating model that has been adopted has reduced OpEx when needed.  Also, the steady, high margin expendable tools business combined with the absence of the convertible debt that was paid off in 2011 have worked to minimize the correlation in the share price to the overall semi-conductor industry cycles while "juicing" cash flow.   As a result of these changes, short interest in K&S has never been lower.

1 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,083.80 -2.83 -0.02%
S&P 500 1,987.94 +0.93 0.05%
NASDAQ 4,472.1080 -1.5890 -0.04%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs