Donald Smith, CIO of Donald Smith & Co., added 486,804 shares of Photronics Inc. (PLAB) on May 24, 2012 at about $5.69 per share, according to GuruFocus Real Time Picks. After the purchase, he owns 10.07 percent of the company’s outstanding shares. Smith is a deep-value, strict bottom-up manager who invests in out-of-favor companies.
Photronics is one of the world’s leading suppliers of reticles and photomasks, components used in the semiconductor and flat panel display industries. In the second quarter ended April 29, 2012, it had revenue of $117.5 million, a 5 percent sequential increase, and a year over year decline from $133.1 million. GAAP net income for the quarter was $8.8 billion, compared to a loss of $16.4 billion the previous year, which included a $30 million debt extinguishment due October 2014. On a non-GAAP basis net income was $14.8 billion in last year’s quarter. Continue Reading »