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.

Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Donald Wennerstrom who wrote (71629)	2/17/2016 6:12:10 PM
From: Elroy	2 Recommendations Recommended By Donald Wennerstrom Return to Sender Respond to of 95480

SIMO is well under 1B a year of total revenue for several years in the 200 to 300M range as shown in the small table Exactly. High growth small companies generally get higher PEs that normal growth larger companies because 1 - the larger companies like to acquire the high growth small company 2 - due to their current small size, it's feasible that the high growth continues for years and year, which is harder for a multibillion in sales company So, I would think it terms of getting a higher valuation, small would be good, not bad.

To: Donald Wennerstrom who wrote (71629)	2/17/2016 10:11:25 PM
From: Elroy	2 Recommendations Recommended By Gottfried Return to Sender Read Replies (1) \| Respond to of 95480

Even though it's small, just look at SIMO's growth, it's nuts. $130m in 2010 to $360m in 2015 is amazing, and most of that is organic revenue growth. I wouldn't be surprised if that's the fastest growth for any publicly traded semiconductor company over that time period/ Who else has almost tripled revenues in 5 years? And forecast more growth from here..... And SIMO is one of the only ways I can think of to invest in the transition from disk drives to SSDs in computers (as well as everyhere else, but computers are a massive market). Every one of those SSDs needs a controller, and SIMO is the world's largest merchant SSD controller maker. Why only a 13x PE rather than a 27x PE? If their SSD controller business continues as expected (it grew 300% in 2015, but from a small base, they only entered the market in 2014) I think they may get some nice multiple expansion. We'll see. MRVL was the big dog in SSD controllers for the past few years, and SIMO basically came in and just took the low end / high volume segment away from MRVL. As SIMO moves up the SSD controller food chain from entry level (SATA-3 for clients) to enterprise level and PCIe and 3D NAND and wherever, if they do as well as they've done in the SATA-3 client SSD market they're going to grow like a weed.