SIMO delivered $3.28 eps in 2020: they’ll probably do $4:80 in 2021
Well, this is the WDC board, but I'm not impressed. No one wants commodity flash controllers unless they're try to sell low cost mediocrity, and SIMO's business is not sustainable in the long run. As I've said before, if you find a quarter on the ground while walking down the street, don't annualize it.
I would not want to own a company reliant on just a handful of key customers. All you need is Micron to finalize Project X, and a good share of SIMO revenue goes POOF. Its not IF, but WHEN.
Lots and lots of companies sell NAND flash. Price war.
No price wars when demand growth exceeds bit growth, which is the outlook for many years to come.
don’t even mention disk drives, old legacy technology, trying to hang in there as long as possible.
Again, you're disconnected from the marketplace and unaware of the continued growth in enterprise HDD. WDC's primary market is storage solutions, not commodity storage products. Talk to any data center, and you'll get some surprising data regarding the ratio of SSD/HDD purchases.
Bye bye WDC.
I assume you meant buy buy WDC. Is one of the most undervalued stocks out there, but well poised to restart its share growth trajectory. My newest investment has even greater potential than WDC, purchased at the open Monday, and already up 17.6% in two days - with a long,long way to run.
I should also mention that your analysis of this company is faulty, as you don't understand the structure of the joint venture, and the cash flows between WDC and the joint venture. Their true earnings are actually much higher than reported, as a good share of COGS is depreciation, and flows back to WDC from the joint venture. |
