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Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Kirk © who wrote (11596)	7/16/2021 8:05:51 PM
From: Elroy	Read Replies (1) \| Respond to of 26638

My guess is the current occupants of the White House would not like this plan to lower competition for flash controllers via an acquisition. Intel acquiring SIMO wouldn't reduce competition. Intel doesn't make client device flash controllers. Intel is selling it's enterprise flash controller group to SK Hynix. So.....an acquisition of SIMO would keep the competition level unchanged, but make Intel the company that owns the global leader in flash controllers for client devices. Intel is in the business of processors. A NAND flash controller is basically a processor for NAND memory. It's a beautiful fit. I'm actually really surprised some of the big daddy semi companies with 30x-50x PEs don't acquire SIMO. SIMO is trading at about 8x 2021 EPS PE ex-cash, and growing 2021 sales above 50% relative to 2020, and 2020 grew about 18% relative to 2019. 2022 likely grows nicely from 2021 as well (hard not to given the massive ramp occurring in 2021, by the time SIMO reports Q4 2021 it will be a lot higher than Q1 2021. Why don't the big boys want buckets of free cash flow, a leading market position in a necessary segment, rapid revenue growth and and and an...... what else are semiconductor stock supposed to do? SIMO is doing EVERYTHING well and firing on all cylinders, and nobody loves it......