This column is for investors willing to take more risk and potentially receive more reward.  The stocks mentioned in this column are not recommended to buy or sell.  They're brought to your attention so you can investigate them further to determine if they fit your risk profile.  Most of the stocks will have less than $1 billion of market capitalization, have more volatility than other stocks, and oftentimes no earnings.  And some will have tremendous stories.

May 6, 2011 - Brooks Automation, Inc. (BRKS-NASDAQ) provides automation, vacuum, and instrumentation solutions primarily to the semiconductor manufacturing industry worldwide. It operates in three segments: Critical Solutions Group, Systems Solutions Group, and Global Customer Operations.

The Systems Solutions Group segment offers a range of products, and engineering and manufacturing services that enable customers to develop and source process tools for semiconductor market applications, as well as manufactures products based on a customer specified design.

Global Customer Operations provides support services, including on and off-site repair services, on and off-site diagnostic support services, and installation services. This segment also provides services and spare parts for the automated material handling systems product line. Brooks Automation also serves customers in data storage, advanced display, analytical instruments, and solar markets. The company was founded in 1978 and is headquartered in Chelmsford, Massachusetts.

Eranings turned from red to black in 2010. In 2009, they were negative $1.92 a share. A year later, they were positive 78 cents a share. This year, 4 analysts have a consensus estimate of $1.48, up 90%. Next year, there's a range of between 70 cents to $1.50. Such is the volatility of the semiconductor business (and its suppliers). Earnings were released on May 5 (after this was written) for the second quarter (fiscal year ends in September). Look for 42 cents a share vs 16 cents in the second quarter of last year. For the third quarter, expect 37 cents compared to 26 cents in 2010's third period.

Revenues are doing the same positive thing: going up. This year, 3 analysts see $746.7 million of sales, an increase of 26%, well above the $593 million of last year. Look for $759 million next year.

The company invested in capital equipment to move into new technology products. The largest opportunity is in the light-emitting diodes which are used for general illumination. There are also microelectromechanical systems that are tiny mechanical devices used to make sensors, light reflectors, and switches. Analysts think this equipment will generate about $40 million in new revenues in 2011 and much more after that. Currently forecasts for automation, vacuum, and instrumentation equipment is rosy because smartphones, tablet PC's and other electronic devices are strong.

Brooks' engineers are winning a lot of design competitions. In December, they brought home 12 new orders, 4 from the semiconductor industry and 8 from other growth markets. Two of the customers are new, having never done busines with Brooks. The company is also starting to win some contracts in Japan where competition is probably fiercest.

Essential numbers: Price to sales ratio is 1.16. Price to book is 1.83. Book value is $6.43. Operating margin for the last 12 months was 11.09% and Profit margin was 12.82%. Return on equity was a remarkable 23.28% and Return on assets was 9.54%. There's $112.97 million in cash for $1.73 a share. There is no debt. Current ratio is 3.31. Beta is 1.67. In the last 52 weeks the stock is up 33.83%. There are 65.42 million shares Outstanding with a Float of 62.75 million. Insiders own 3.75%. Institutions have 85.50%. There is no dividend.

While the current semiconductor cycle is still strong, management is looking to take advantage of it by expanding Research and Development efforts. Focus will be on emerging technologies. That can mean pressure on current margins as those expenses won't see payback for a while. That makes this stock more suitable for Aggressive investors who like the risk/reward dynamics of a successful stock that is willing to invest in the future.