Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: franklin1 who wrote (2608)	11/2/2022 12:19:32 AM
From: Elroy	Read Replies (1) \| Respond to of 2979

The big negative (for me) in SIMO's Q3 results was the gross margin decline from 53% in Q2 to 47.5% in Q3. That's 5% profit loss on each dollar of sales compared to last Q. They said it was due to mix and discounts. They're probably clearing out old legacy inventory at any price so it doesn't become obsolete as the SSD markets move to gen4. Hopefully it bounces back up in a quarter or two when things stabilize. But honestly, with a $105 value buyout offer on the table, and a share price of about $56, all that matters at this point is the MXL deal going through. I was surprised that SIMO didn't announce a share repurchase. I'm sure SIMO would like to buy stock at $56, and MXL would rather buy it at $56 than $105 equivalent, so .... come on guys, buy some stock!