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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (73190)	7/27/2023 2:26:40 PM
From: E_K_S	Read Replies (1) \| Respond to of 78958

I did a small buy with a few more adds every 5% lower. My thesis is w/o any merger it is a value Buy at 13x PE and zero debt. If MXL has no interest, there may be others that might be interested. Speculators will sell their shares cheap as it appears no real big gains to occur in days or weeks. That's when I like to Buy. I have limited Tech ownership as it's hard to find a GARP Tech stock selling below 16x PE. QCOM is another one I have been accumulating but at/near $105. Current Forward PE 19x. Also has potential in AI services. IBM is one I have been accumulating but at/near $125; Forward PE 14.83x. They just acquired a cloud service company for $4 Billion and continue to grow that business. Generate growing FCF. I did sell 5% of my IBM high cost shares at $141.50 today. Plan to hold the remaining to see how much their cloud services grow. GOOGL was buying this at/below $100 but failed to get to a core position. Current PE now at 22.5x and they continue to grow their Cloud business (not so much for MSFT). GOOG has many different projects that could be huge in the future. Will be adding to this position on any sell off. Only at a 1/3 position currently. --------------------------------------------------------------- My takeaway; force yourself to add shares (even in the face of a 'crash') when they get into your value zone. You can always let a few go on any significant rally. These larger Tech companies generally do not fail. FWIW, I do own INTC but for the longer term w/ no earnings. Built a nice core position w/ avg cost at $29. Top Tech holdings: IBM, ORCL, INTC. IBM & KLAC

To: Madharry who wrote (73190)	7/27/2023 6:55:00 PM
From: E_K_S	Read Replies (1) \| Respond to of 78958

Re: SIMO earnings - I guess earnings as expected 'soft'; stock +6% AH last $55.70/share Silicon Motion Announces Results for the Period Ended June 30, 2023 Business Highlights Second quarter sales increased 13% Q/Q and decreased 44% Y/Y SSD controller sales: 2Q increased 5% to 10% Q/Q and decreased 30% to 35% Y/Y eMMC+UFS controller sales: 2Q increased 45% to 50% Q/Q and decreased 65% to 70% Y/Y SSD solutions sales: 2Q decreased 5% to 10% Q/Q and decreased 25% to 30% Y/Y TAIPEI, Taiwan and MILPITAS, Calif., July 27, 2023 (GLOBE NEWSWIRE) -- Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon Motion”, the “Company” or “we”) today announced its financial results for the quarter ended June 30, 2023. For the second quarter of 2023, net sales (GAAP) increased sequentially to $140.4 million from $124.1 million in the first quarter of 2023. Net income (GAAP) increased to $11.0 million, or $0.33 per diluted American Depositary Share of the Company (“ADS”) (GAAP), from net income (GAAP) of $10.2 million, or $0.30 per diluted ADS (GAAP), in the first quarter of 2023. For the second quarter of 2023, net income (non-GAAP) increased to $12.6 million, or $0.38 per diluted ADS (non-GAAP), from net income (non-GAAP) of $11.2 million, or $0.33 per diluted ADS (non-GAAP), in the first quarter of 2023. 3rd & 4th Quarters to be better w/ more growth We expect that our third quarter 2023 sales will grow 15% to 20% QoQ, and our third quarter 2023 gross margin will be similar or slightly improved QoQ. We believe that we are well positioned to drive long-term growth of our business and increase our profitability levels Still does not look like they will achieve their FY 2024 earnings estimate of $3.62/share; Estimates for FY 2023 is $2.00/share. That will be challenging so Q3 & Q4 better be really good. Still will accumulate shares on any significant sell off w/ the potential to seal the deal of the merger and/or payment for merger termination.