Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Taro who wrote (243063)	7/24/2005 6:48:01 AM
From: Elroy	Read Replies (1) \| Respond to of 1574685

Actually if SNDK were to use their higher equity multiple (~22x), they could acquire both OVTI (image sensors) and SGTL (mp3 processors) and turn themselves into the diversified consumer semi stock. OVTI and SGTL get teenie multiples (~12x) because of the one product problem, and SNDK has a bit of the same problem. SNDK could easily do accretive acquisitions of both, diversify their revenues stream, and then get a BRCM-style PE of 25x-30x, and voila, everyone is happy. In addition, SNDK could use their fab to make the OVTI and SGTL chips and save the cost that those two companies pay to TSMC - it would have to be a good thing to always have the fab full. Manufacture to 100% capacity and outsource the rest to TSMC. It's such a brilliant idea, I can't understand why SNDK management doesn't do it. In fact, it would be great to see hostile takeovers in the semi industry (like the ORCL/PSFT thing). But anyway, it's lunchtime.