Investing and Global Finance News

Silicom Ltd Shows Tremendous Profits And Potential

Silicom Ltd (SILC) stock has risen from $12.31 in August 2011 to 19.33 as of January 23, 2012. The company provides connectivity solutions to servers and server based systems internationally.

Financially, the company’s 2011 revenues increased by 30% over their 2010 revenues: from 30.4 million dollars to 39.6 million dollars in 2011. Net income increased from $5.7 million in 2010 to $8.2 million in 2011. In addition, since 2009 the company has almost tripled its net income from $2.8 million in 2009 to $8.2 million in 2011. In addition, the operating margin (ttm) is 20.67% and the profit margin is at 20.29%. The management effectiveness ratios are return on assets of 7.54% and return on equity of 13.58%

The only problem that I see is that the trading volume is unusually low, ranging from 2,000 to 72,000 shares traded per day. This means that if one should need to sell in a hurry, he may have to wait for a day or more until  he makes the sale. I also prefer stocks that give dividends which Silicom does not, but I can’t call that a defect.

Some of the directors and managers at Silicom are: Ilan Kalmanovich, Zohar Zisapel, and Einat Domb-Har.

Disclaimer: The information provided here is preliminary information and is insufficient to base investment decisions on. All investments should be made only after a thorough investigation of the investment.

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