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

To: Sam who wrote (2521)	5/5/2022 12:25:59 PM
From: Elroy	Respond to of 2980

If another bidder does emerge, I would expect it to happen in the next week or two. Perhaps, that seems they way it normally happens, maybe within the next six weeks. But....if SIMO doesn't blow up before the deal closes, and SIMO just delivers it's current 2022 revenue and gross margin guidance, the deal price of $115 or so will seem WAY TOO CHEAP. SIMO should be doing about $325m and $2.50 EPS per Q exiting 2022, and have $10 cash and no debt. Why sell that for $115? Strangely, I think SIMO needs to have a blow up quarter and reset expectations lower for the deal to go through. If shareholders vote in 2023, I think they likely vote against the deal if SIMO's number at that time are what I expect them to be (if there is no reset lower in between now and then). Why sell a semi stock that grew sale 70% in 2021, and may grow sales 30% in 2022, for 10x NTM EPS? It's crazy cheap........ Maybe the sales growth is ending in 2023, but that's not been SIMO management's story.