Shares of Amtech Systems (ASYS) are down 15% this morning and a few investors are asking, why would shares trade lower if the company is buying? Let me explain, ASYS will buy about 30 to 50k shares over the next month no matter what share prices do, and establish an average price for the $4m they are investing back into the company.This is normally accomplished in a trading algorithm called VWAP, which means Volume Weighted Average Price.
Fokko Pentinga, President and Chief Executive Officer of Amtech, commented, "At current price levels, we believe Amtech's common stock represents an attractive investment opportunity for the Company. We also believe we can continue to invest in the initiatives that are key to our future success as well as enhance the value of our Company by repurchasing common stock under this program."
Amtech Systems, Inc. manufactures and markets capital equipment and related consumables used in fabricating solar cells, LED, and semiconductor devices worldwide. The company operates in three segments: solar, semiconductor, and polishing.
The Solar segment offers thermal processing systems, including: diffusion, plasma-enhanced chemical vapor deposition, atomic layer deposition parts and services; and solar automation products, including mass wafer transfer systems, sorters, long-boat transfer systems, load station elevators, buffers, and conveyers.
The Semiconductor segment provides thermal processing equipment and related controls to semiconductor, electronics, automotive, and other industries; horizontal and vertical diffusion furnaces to silicon wafer and microelectromechanical systems industries; and lapping equipment, polishing templates and wafer insert carriers, mass wafer transfer systems, loaders, and sorters.
The Polishing segment provides silicon wafers for semiconductor products, sapphire substrates for LED lighting and mobile devices, silicon carbide for LED lighting, various glass and silica components for 3D image transmission, quartz and ceramic components for telecommunications devices, medical device components, and computer hard disks under the PR Hoffman brand name.
The company sells its products through sales personnel, as well as network of independent sales representatives and distributors. The company was formerly known as Quartz Engineering & Materials, Inc. and changed its name to Amtech Systems, Inc. in 1987. Amtech Systems, Inc. was founded in 1981 and is based in Tempe, Arizona.
Investors get giddy when a company announces stock buybacks, but what they really need to understand is what transpires.The company will not report back how they did during this program, you will not hear of it again—unless they buy back more stock.
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