I believe IFX has good prospects.
In DRAM, I consider IFX the technology and cost leader (which is the same in this industry), ahead of Micron, Samsung and the Japanese. They are a leader in the more attractive leading-edge products and have a very good customer base on long-term contract.
In logic, they have a strong product line-up particularly in broadband and wireless communications. With these products, they are positioned right next to major demand in Europe.
Top management (Schumacher, Zitzewitz, Eggers) is very competent, passionate and aggressive. IFX also has developed the ability to effectively manage geographically disperse production and R&D facilities as well as joint activities with other companies, which is a major competitive plus.
IFX's segment, semicons, has a good chance to return to the upcycle it began in H1/2000 as new supply is coming online mostly from H2/2002 onward and demand recovers.
IFX is located in Euro-zone, which will be a plus for them if the US goes into recession. IFX effectively offers a currency shelter to $ investors.
Yesterday's results were excellent under the given circumstances. Note that they made better than 10% EBIT margin in DRAM in Q4/00 even in the current unfavorable industry environment. |
