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Technology Stocks : Silicon Motion Inc. (SIMO) -- Ignore unavailable to you. Want to Upgrade?

To: Anonymous895 who wrote (2487)	4/10/2022 4:19:42 PM
From: Elroy	Read Replies (1) \| Respond to of 2980

SIMO is by far the best risk/reward situation I have ever seen. Seriously? Come on, that's nuts. If the company delivers outstanding financial results, and the shares don't respond positively, how great an investment can it be? Have a look at Himax. It's also growing like mad, and the PE is I think 5x. SIMO may grow like mad for two years, and the share price go nowhere, and the PE may then be 5x. If so, the owners have taken on all the risk (that the company fails to deliver the strong results) and received no reward. Why bother? I'd much rather own ADI or TXN, and just enjoy the growth of the semiconductor industry in a well positioned strong company that is followed by and invested in by Wall Street. SIMO management should sell themselves to a larger semiconductor company for 16x. Inside of a diversified semiconductor stock SIMO's revenue and EPS growth would probably earn a 20x multiple. As a standalone unloved entity, it may get only a 5x PE. Why continue as a standalone? It's certainly not for the financial benefit of the shareholders.