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.

June 3, 2011 - Orbotech Ltd., together with its subsidiaries, engages in the design, development, manufacture, marketing, and service of production solutions for specialized applications in the supply chain of the electronics industry worldwide.

It also markets computer aided manufacturing (CAM) and engineering solutions for PCB production; develops and markets character recognition solution to banks and other financial institutions; and provides technology for Web-based and location-independent data entry for check and forms processing. The company was formerly known as Optrotech Ltd. and changed its name to Orbotech Ltd. in October 1992 as a result of merger with Orbot Systems Ltd. Orbotech was founded in 1981 and is headquartered in Yavne, Israel.

One of the key phrases in that description is: test and repair systems for flat panel display. In other words, it checks out and fixes tablet computers, among other things. And we all know how hot tablet computers are. This is a company with a very bright future.

But first, it helps to look at its history, particularly earnings. They've been erratic. In 2000, they reached $2.40 a share. By 2002, they were negative by 17 cents. They built again over the next 4 years, with 2006 reporting $1.76. But then dropped in one year to 48 cents, followed by 37 cents, finally bottoming at negative 58 cents in 2009. Of course, the stock followed the earnings, going from $27.30 in 2006 to a low of $2.90 in late 2008.

Things are much better now. 2010 finished with $1.09 in earnings. Four analysts see this year's eps at $1.52, then $1.67 in 2012. Expect the June quarter to show 48 cents a share compared to 35 cents last year.

Sales improved markedly. After showing $377.6 million in 2009, they ended at $529.4 million in 2010. This year, consensus from 5 analysts is for $571.88 million, up 8%, then $599.05 million in 2012, another 4.8% advance. In the first quarter, revenues were higher by 34% compared to last year's first period. In 2010, revenues from sales were 77% of the total with 23% coming from service.

That's because tablets are selling fast. So are smartphones with their small screens. So are other electronic devices. Many of them use the company's printed circuit board inspection and production products, and in particular, its laser direct imaging tools. Analysts estimate the company will sell 170 such systems this year. Last year, the total was 107. With China manufacturing more and more flat panels, look for higher systems sales in 2012.

Orbotech is getting better focused. GE is buying the company's Medical Systems division for $9 million plus another $5 million subject to performance based incentives. Another division is going away: Medical Denmark which is a management buyout. Other recent developments: the company just sold 7.705 million shares in a secondary for $12.50 per share for proceeds of $91.5 million. Proceeds will go to general corporate purposes. And a lawsuit between Orbotech and Camtek has been dismissed with all parties involved signing an agreement for the dismissal.

Essential numbers: Trailing P/E is 10.35. Price to sales is .81. Price to book is 1.27. In the last 12 months, Operating margin was 11.68% and Profit margin was 7.76%. Return on equity was 14.93% and Return on assets was 6.63%. Total cash is $194.01 million for $5.48 a share. Total debt is $120 million. Debt to Equity is 33%. Current ratio is 3.54. Book value per share is $10.21. Beta is 1.60. There are 43 million shares Outstanding with a Float of 35 million. Insiders own 112% of the stock. Institutions have about 59.5% of the Float. There is no dividend.

Aggressive investors will want to look at this stock for a momentum play. While it's rebounded significantly since late 2008 (at $2.90 a share), this is a stock that once traded at $77.30 in 2000.