http://stockmarketbeat.com/blog1/2006/09/18/the-semiconductor-industry-needs-to-go-private/ Our beat: The stock market. Our job: Beat it. Wed, 15 Oct 2008 23:51:21 +0000 http://wordpress.org/?v=2.2.1 http://stockmarketbeat.com/blog1/2006/09/18/the-semiconductor-industry-needs-to-go-private/#comment-22798 Tim Arcuri Tells it Like it Is: Over-Capitalized Sector Should Buy Back More Stock - Stock Market Beat - Our beat is the stock market. Our job is to beat it. Tue, 03 Apr 2007 13:31:24 +0000 http://stockmarketbeat.com/blog1/2006/09/18/the-semiconductor-industry-needs-to-go-private/#comment-22798 [...] Now that we’ve gotten our derisive comments toward sell-side analysts out of the way, we’d like to point out an analyst we think is on the ball: Citi’s Tim Arcuri (courtesy of Tech Trader Daily): Citigroup’s Timothy Arcuri asserted in a research note today that many semiconductor equipment companies are “flush with cash,” and could easily be buying back stock. “While much of this depends on the sustainability of memory spending (overall capex is running well above what we would consider “normalized” levels), balance sheets at most equipment companies remain significantly over-capitalized,” he writes. Can’t get much plainer than that. Semi equipment companies are overcapitalized and should be spending their cash on reducing capital rather than expanding it. Sounds like something we’ve heard before. Not that we think they’ll listen, but kudos to Tim for getting the story right. For more information, see all articles on: Stock Market, Semis, AMAT, KLAC, SMH [...] […] Now that we’ve gotten our derisive comments toward sell-side analysts out of the way, we’d like to point out an analyst we think is on the ball: Citi’s Tim Arcuri (courtesy of Tech Trader Daily): Citigroup’s Timothy Arcuri asserted in a research note today that many semiconductor equipment companies are “flush with cash,” and could easily be buying back stock. “While much of this depends on the sustainability of memory spending (overall capex is running well above what we would consider “normalized” levels), balance sheets at most equipment companies remain significantly over-capitalized,” he writes. Can’t get much plainer than that. Semi equipment companies are overcapitalized and should be spending their cash on reducing capital rather than expanding it. Sounds like something we’ve heard before. Not that we think they’ll listen, but kudos to Tim for getting the story right. For more information, see all articles on: Stock Market, Semis, AMAT, KLAC, SMH […]

]]> http://stockmarketbeat.com/blog1/2006/09/18/the-semiconductor-industry-needs-to-go-private/#comment-6898 Don’t Hold Your Breath Waiting for More Semiconductor Buyouts - Stock Market Beat - Our beat is the stock market. Our job is to beat it. Thu, 30 Nov 2006 20:03:41 +0000 http://stockmarketbeat.com/blog1/2006/09/18/the-semiconductor-industry-needs-to-go-private/#comment-6898 [...] He thinks those companies could substantially raise their valuations via a combination of share repurcases and the issuance of debt; he says potential upside to the shares could be as high as 20%-40%. We agree that the semicondustor industry could use some financial discipline. However, when the excitement first started cranking up, we said if you figure the average buyout will be at 9x EBITDA and you expect a 25% buyout premium to make speculating worth your while, you should only buy stocks trading below 7.2x EBITDA. Let’s see how Prudential’s list compares: [...] […] He thinks those companies could substantially raise their valuations via a combination of share repurcases and the issuance of debt; he says potential upside to the shares could be as high as 20%-40%. We agree that the semicondustor industry could use some financial discipline. However, when the excitement first started cranking up, we said if you figure the average buyout will be at 9x EBITDA and you expect a 25% buyout premium to make speculating worth your while, you should only buy stocks trading below 7.2x EBITDA. Let’s see how Prudential’s list compares: […]

]]> http://stockmarketbeat.com/blog1/2006/09/18/the-semiconductor-industry-needs-to-go-private/#comment-6720 Merrill Thinking What We’re Thinking on Semi Buyouts - Stock Market Beat - Our beat is the stock market. Our job is to beat it. Tue, 28 Nov 2006 17:22:25 +0000 http://stockmarketbeat.com/blog1/2006/09/18/the-semiconductor-industry-needs-to-go-private/#comment-6720 [...] Of course, with the money flying around in private equity-land these days, who knows? It sure wouldn’t hurt the industry to catch a little bit of private-market discipline. The author may hold a position in the securities discussed. The author's current holdings are as follows: Long: Intuit (INTU) put options; Nasdaq 100 (QQQQ) put options; Bookham (BKHM; Ballard Power (BLDP); Syntax Brillian (BRLC); CMGI (CMGI); Genentech (DNA); Ion Media Networks (ION); Lion's Gate (LGF); Three Five Systems (TFS); Adobe Systems (ADBE) call options; IShares Japan (EWJ); StreetTracks Gold (GLD); Starbucks (SBUX); U.S. Oil Fund (USO); Plantronics (PLT) call options; Short: Ceradyne (CRDN) put options; Lion's Gate (LGF) call options; Dell (DELL) put options; Plantronics (PLT) put options; [...] […] Of course, with the money flying around in private equity-land these days, who knows? It sure wouldn’t hurt the industry to catch a little bit of private-market discipline. The author may hold a position in the securities discussed. The author’s current holdings are as follows: Long: Intuit (INTU) put options; Nasdaq 100 (QQQQ) put options; Bookham (BKHM; Ballard Power (BLDP); Syntax Brillian (BRLC); CMGI (CMGI); Genentech (DNA - Annual Report; Ion Media Networks (ION); Lion’s Gate (LGF); Three Five Systems (TFS); Adobe Systems (ADBE) call options; IShares Japan (EWJ); StreetTracks Gold (GLD); Starbucks (SBUX); U.S. Oil Fund (USO); Plantronics (PLT) call options; Short: Ceradyne (CRDN) put options; Lion’s Gate (LGF) call options; Dell (DELL) put options; Plantronics (PLT) put options; […]

]]> http://stockmarketbeat.com/blog1/2006/09/18/the-semiconductor-industry-needs-to-go-private/#comment-3312 Stock Market Beat » Blog Archive » Maxim Miss Almost Missed In Excitement Wed, 20 Sep 2006 13:51:12 +0000 http://stockmarketbeat.com/blog1/2006/09/18/the-semiconductor-industry-needs-to-go-private/#comment-3312 [...] What with Freescale, Yahoo!, Adobe, Oracle, Thailand, etc. this week we almost missed this story: Linear and mixed-signal IC supplier Maxim Integrated Products Inc. today lowered its revenue and EPS guidance for fiscal Q1 2007. [...] […] What with Freescale, Yahoo!, Adobe, Oracle, Thailand, etc. this week we almost missed this story: Linear and mixed-signal IC supplier Maxim Integrated Products Inc. today lowered its revenue and EPS guidance for fiscal Q1 2007. […]

]]>