re: Alpha & Omega Semiconductors (Nasdaq: AOSL) $9.00
After quite some time, a pure equity investment opportunity. The goal here is clearly long-term capital gains as the firm isn't paying dividends yet. This is imho one of the most attractive semiconductor firms at the moment.
Alpha & Omega Semiconductors (Nasdaq: AOSL) : near $9.00
http://finance.yahoo.com/q/pr?s=AOSL+Profile
Alpha and Omega Semiconductor Limited designs, develops, and supplies a range of power semiconductor products for computing, consumer electronics, communication, and industrial applications. The company offers power discretes products, including low, medium, and high voltage power metal-oxide-semiconductor field-effect transistors (MOSFETs), which deliver power by switching, transferring, or converting electricity; SRFETs; electrostatic discharge; protected MOSFETs; and insulated-gate bipolar transistors. It also provides power ICs that deliver power; and control and regulate the power management variables, such as the flow of current and level of voltage. The company’s products are used in notebooks, net books, desktop and tablet personal computers (PCs), servers, flat panel displays, TVs, graphics cards, game boxes, chargers, battery packs, AC adapters, power supplies, e-bikes, motor controls, smart phones and other portable devices, white goods and industrial motor drives, UPS systems, wind turbines, solar inverters, industrial welding products, set-top boxes, all-in-one-PCs, DVD/Blu-Ray players, and networking equipment. It primarily serves original equipment manufacturers through distributors and original design manufacturers in Hong Kong, South Korea, China, the United States, and internationally. Alpha and Omega Semiconductor Limited was incorporated in 2000 and is headquartered in Sunnyvale, California.
Valuation is pristine: EV/R is 0.45, EV/EBITDA around 3
http://finance.yahoo.com/q/ks?s=AOSL+Key+Statistics
Gross margins >26%, goal is to top 35% in a couple of years
At the moment, around $350m in revenue, $225 in marketcap and $75 net cash.
The company bought a fully equipped Fab from IDT Corp. last year for around $25m, to follow the playbook of a "fab-lite" model. They outsource contract operations of their existing product line but develop and produce nex-gen power semis in their captive fab, which acclerates their development cycle. From their recent newsflow, their specialty appear to be MOSFETs and as of recently - high performance IGBTs. Despite the uncertain semi environment, the company posted 15% top line growth year/year so far, as they enter new markets (industrial).
Find out more about the company via their investor's section at their homepage
http://investor.aosmd.com/
I clearly sense multibagger potential here, which might be the result of a more favourable tech-stock environment over the coming years and the company achieving their targeted gross margin
performance north of 35% (doable, see ONNN history) and modest top-line growth of 15% or better. What is more, current valuation is really rock-bottom. Even a 5-bagger from here would still result in EV/R of merely 2 and a EV/EBITDA below 15 !
all the best
CROSSY |
