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

To: Sam who wrote (88498)	6/12/2022 8:04:44 PM
From: Elroy	Respond to of 95484

Industry giants such as ASUS, Acer and HP have issued warnings that the consumer market has shown signs of weakness I wonder how this story will affect SIMO actual results going forward? It doesn't matter much because SIMO is being acquired for mostly cash, so it has that floor under the share price. But.....there has been similar news about weakness in Chinese handset sales, another major product focus area for SIMO. Coming into 2022 SIMO said they had over $1.5 billion in orders, but couldn't deliver because TSMC didn't have the capacity to make enough controllers for SIMO. SO they guided to about $1.15 billion in 2022 sales. So if demand is weakening..........probably TSMC now has more capacity to allocate to SIMO, but ....... do they still have $1.5 billion in orders? Even if the order number shrinks to $1.3 billion, if SIMO gets more capacity from TSMC they could raise guidance. Yeah, who knows? In the share price equation due to the buyout by MXL it doesn't really matter...... I sort of wonder which customers are both not getting their orders filled, and also cutting forward sales estimates. Very confusing.