UMS Holdings

[Nick]

Applied Materials has issued weak sales guidance over the next few months. The bill to book ratio is still less than 1.0 so it is unlikely any recovery will occur soon. UMS derive over 90% of its revenue from Applied Materials so its small CEM division in the O&G and Aerospace division is unlikely to help cover this shortfall. UMS has historically generated positive cash-flow in each year of operation and currently has net cash gearing so it is unlikely to go bust. The key question - when will semiconductor equipment manufacturers orderbook recover ? Meanwhile, as long as UMS makes 3-4 mil profit per quarter, the 1 US cent dividend should be sustainable.

(Vested)