Tuesday, July 31, 2007

Aviza Technology Inc.

Aviza Technology Inc. is a NASDAQ listed security that has been trading in a range between $3.46 and $8.99 over the past year. With 20,815,250 shares outstanding, a recent price of $4.95 gives a total market capitalization of $103,035,484. While there are certainly larger companies, Aviza Technology Inc. has definitely earned its place in the pack. Last year, Aviza Technology Inc. created $-0.18 in earnings for every share outstanding.

Aviza Technology Inc. is currently priced by the market at 0.00 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.

With a share price under $50 a share and earnings per share below $1 a share, Aviza Technology Inc. is unlikely to be an interesting value proposition. Consistent earnings are the key to high valuations and this security is not on its way.

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