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Strategies & Market Trends : Value Investing

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From: Elroy	2/4/2021 10:28:23 PM
	Read Replies (6) of 78676

I think I discussed SIMO here a few months ago as a cheap tech stock with potential growth prospects. They reported yesterday, as expected, but their guidance is off the charts bullish. After five years of zero revenue growth, they now forecast revenues to double in three years from $520m in 2020 to $1 billion in 2023. The growth comes from core served market size growth, and forecast share gains in their served market of flash controllers. SIMO closed today at $56. They have $13 per share cash and property. Their 2020 EPS was $3.28, so the trailing PE ex cash is about 13x. That’s right, I said “Trailing PE” is 13x if you deduct cash and property from the current share price. SIMO makes semiconductors. Lots of semi's have crazy PEs like 25x and 35x and 50x. I forecast on a billion in sales SIMO will make about $9.00 per share. So, it’s sorta value, and sorta growth, at the same time. Happy to answer any questions on SIMO if anyone has any.

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