my bets are on drill ships (limited supply) for oil exploration, and met coal for steel/infrastructure demand.
I don't know what a drill ship is, not do I know what met coal is.
Neither sounds like something that would double in 18-24 months, but maybe you're following the various energy cycles more than me.
Nothing that I follow looks particularly attractive to me at the moment. SIMO actually looks OK for the next year or two, but a double seems a stretch (although possible, depending on a few things). SIMO is moving into enterprise SSD controller chips, in the heart of the in demand hot segment right now. We'll have an idea if they've done well by about 2027. They also have a relationship selling into the NVDA eco-system which they are saying may grow exponentially over the next few years, and thereafter. If they do get some traction in enterprise and NVDA, the SIMO stock price could double with a combo of sales growth and multiple expansion. And they're an acquisition target. Not much wrong with SIMO at the moment, they're gaining market share in legacy segments, growing to a material sales level in a newish "auto memory chips" segment in 2026, and then if enterprise joing autos as a successful growth space in 2027, they're a traditional dominant in their cash cow (PCs, cell phones) segment with various growth segments that should be more than 25% of sales by 2027.
As far as I can tell all SIMO needs is for time to pass and these sales to materialize. Almost every segment of theirs is expected to grow, and the new stuff (auto, enterprise, NVDA) should grow quite rapidly. The main problem with SIMO now is not the business, it's that they're located in Taiwan......China invading scares me more than underperformance of the SIMO company fundamentals. |
