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

To: Elroy who wrote (2490)	4/10/2022 10:55:18 PM
From: Anonymous895	Read Replies (1) \| Respond to of 2980

Look, disappointment I get. But it still remains true that SIMO is the best risk/reward profile I have ever seen at this price level going forward. The past doesn't change that. Sure, if Marvell wants to buy SIMO for $150, I get that most shareholders would probably be happy to sell. I can't tell you why Marvell doesn't do that, but if you want my two cents, they quite possibly would run into anti-trust concerns. As for the stock buyback, my sense is that they have reliably announced stock buybacks when the stock was underpriced. This is different than many companies that do stock buybacks all the time, regardless the stock valuation. (In fact, studies show that stock buybacks generally increase when stocks are overvalued, the opposite of what shareholders would want.) Also, many companies announce stock buyback authorizations with big fanfare and don't actually follow through with much of it. SIMO management, on the other hand, has only announced stock buybacks when the stock valuation was compelling and they have then followed through. Look back to the last time that they announced a big stock buyback and I think you will agree that they timed it well. In this time as well, I believe that the stock valuation is quite compelling for a significant buyback, and they are executing very quickly. A large chunk in December, another large chunk in January, and they said they will finish the rest by the end of June. I think that is a credible, serious signal to the management's opinion on the stock valuation, based on their own knowledge of their long-term industry positioning. Be disappointed. Be frustrated. But this is a stock to be loading up at these levels, not lightening. That is what it means to be a value investor. When a great business's stock suffers and drops, it makes the stock more compelling, more of a value, and less of a risk.