Semiconductors, Memory and SSDs Specialist, Objective Analysis

Jim Handy

Semiconductors, Memory and SSDs Specialist

Objective Analysis

Objective Analysis offers third-party independent market research and data for the semiconductor industry and investors in the semiconductor industry.

Semiconductors, Memory and SSDs

Thematic (Sector/Industry)

While March semiconductor revenues reached record levels, a price downturn appears to have begun.  This downturn seems likely to have a short duration before the market resumes its good growth for the rest of the year.

While March semiconductor revenues reached record levels, a price downturn appears to have begun.  This downturn seems likely to have a short duration before the market resumes its good growth for the rest of the year.

Equity Bottom-Up

In today's Samsung earnings call the company reported lower semiconductor profits than those of its first quarter, and gave relatively weak excuses for the company's performance.  This comes one day after SK hynix revealed higher-than-expected revenues and earnings for the same quarter, and one month after a very positive call from Micron.

In today's Samsung earnings call the company reported lower semiconductor profits than those of its first quarter, and gave relatively weak excuses for the company's performance.  This comes one day after SK hynix revealed higher-than-expected revenues and earnings for the same quarter, and one month after a very positive call from Micron.

Samsung Earnings Disappoint After Strong SK Hynix Call

SK hynix' earnings call today showed good results, and management's outlook is for an even more positive second quarter and second half.  As a result, the company is accelerating its capital spending.

SK hynix' earnings call today showed good results, and management's outlook is for an even more positive second quarter and second half.  As a result, the company is accelerating its capital spending.

SK Hynix Posts Good Results, Expects Even Better

For the third month in a row semiconductor revenues have been 14% or more above trend, to set historic records.  This Smartkarma Insight explores this phenomenon and the price dynamic that is driving it.

For the third month in a row semiconductor revenues have been 14% or more above trend, to set historic records.  This Smartkarma Insight explores this phenomenon and the price dynamic that is driving it.

February Semiconductor Revenues Remain Impressively Above Trend

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

This morning in the Nikkei there is an <a href="https://asia.nikkei.com/Business/Business-deals/Toshiba-receives-offer-from-CVC-to-go-private-in-20bn-deal" target="_blank" rel="noopener">article</a> (English, Japanese is <a href="https://www.nikkei.com/article/DGXZQOUC06CLO0W1A400C2000000/?unlock=1" target="_blank" rel="noopener">here</a>) headlined...<blockquote>Toshiba receives offer from CVC to go private in $20bn deal</blockquote>The accompanying article in Japanese including CEO Kurumatani-san's comments suggests that the board will meet today to discuss it. The initial response to the press was that it had received the initial proposal yesterday without any previous consultation, so the company would seek more information and consider the proposal carefully.It's early days. The headline number of ¥5,000/share is too low, by a fair bit, and there are a lot of hurdles (which are NOT shareholders wanting more) before this could go forward (allowing shareholders to want more).Exactly one year ago today, I wrote <a href="https://www.smartkarma.com/insights/an-mbo-for-toshiba-not-as-silly-as-it-sounds" target="_blank" data-smartkarma-citation="insights:38199" rel="noopener">An MBO for Toshiba? Not As Silly As It Sounds</a> after an article in an "investigative" magazine called FACTA (most famous for pre-commenting on the fraud on Olympus nearly a decade ago) put out an article "Toshiba: Kurumatani's Astonishing MBO Scheme: Will He Be Able to Expel Noisy Shareholders?" (東芝・車谷が「MBO」画策の仰天: 物言う株主「放逐」は叶うか).The article spent a lot of time talking about Kurumatani-san as a person, the insinuations that he hates shareholders, and about his desire to control his own fate - to "have his own castle" (by getting noisy activists out). The story suggested then that he saw his chance now (early April 2020) as the fall in the share price saw foreigners sell (that analysis was weak; I expect the activists were not the ones selling down hard in an illiquid market in the covid-crash, and I said as much). The article name-dropped PE funds and related parties (one fund, Integral, was led by a former SMBC colleague; and CVC - where Kurumatani-san spent a year as the Japan rep after leaving SMBC when he didn't get the nod for the top job - was mentioned as another), but I highlighted, <div>
<blockquote>The "astonishing scheme" about the MBO though is not to be ignored. It serves a LOT of purposes. </blockquote>
I stand by that conclusion, and it is worth thinking about how this might play out.
Much more below the fold.
<div></div>
</div>

This morning in the Nikkei there is an article (English, Japanese is here) headlined...Toshiba receives offer from CVC to go private in $20bn dealThe accompanying article in Japanese including CEO Kurumatani-san's comments suggests that the board will meet today to discuss it. The initial response to the press was that it had received the initial proposal yesterday without any previous consultation, so the company would seek more information and consider the proposal carefully.It's early days. The headline number of ¥5,000/share is too low, by a fair bit, and there are a lot of hurdles (which are NOT shareholders wanting more) before this could go forward (allowing shareholders to want more).Exactly one year ago today, I wrote An MBO for Toshiba? Not As Silly As It Sounds after an article in an "investigative" magazine called FACTA (most famous for pre-commenting on the fraud on Olympus nearly a decade ago) put out an article "Toshiba: Kurumatani's Astonishing MBO Scheme: Will He Be Able to Expel Noisy Shareholders?" (東芝・車谷が「MBO」画策の仰天: 物言う株主「放逐」は叶うか).The article spent a lot of time talking about Kurumatani-san as a person, the insinuations that he hates shareholders, and about his desire to control his own fate - to "have his own castle" (by getting noisy activists out). The story suggested then that he saw his chance now (early April 2020) as the fall in the share price saw foreigners sell (that analysis was weak; I expect the activists were not the ones selling down hard in an illiquid market in the covid-crash, and I said as much). The article name-dropped PE funds and related parties (one fund, Integral, was led by a former SMBC colleague; and CVC - where Kurumatani-san spent a year as the Japan rep after leaving SMBC when he didn't get the nod for the top job - was mentioned as another), but I highlighted, 
The "astonishing scheme" about the MBO though is not to be ignored. It serves a LOT of purposes. 
I stand by that conclusion, and it is worth thinking about how this might play out.
Much more below the fold.



Toshiba - The CEO Gets His MBO Bidder and Toshiba Will Get Interestinger

United States

Micron Technology, Inc., through its subsidiaries, manufactures and markets dynamic random access memory chips (DRAMs), very fast static random access memory chips (SRAMs), Flash Memory, other semiconductor components, and memory modules.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Micron Technology (MU US)

March Semiconductor Sales Up Yet Again

The SIA reported very positive semiconductor revenues for the first quarter, but leading indicators show that a correction has begun. This Insight...

Jim Handy

Samsung Earnings Disappoint After Strong SK Hynix Call

Samsung's April 29 earnings call was lackluster compared to its competitors' recent announcements. Is the company losing its technology lead? Are...

Jim Handy

SK Hynix Posts Good Results, Expects Even Better

SK hynix' April 28 earnings call disclosed not only a good first quarter, but also a great outlook for the rest of 2021, not just for SK hynix, but...

Jim Handy

February Semiconductor Revenues Remain Impressively Above Trend

What is driving the current boom in semiconductors? An ongoing shortage, which is driving striking price increases, leading to record revenues. ...

Jim Handy

Toshiba - The CEO Gets His MBO Bidder and Toshiba Will Get Interestinger

3mos ago Toshiba was cheap. Now TOPIX squeezes float, Kioxia is hot, Activists won the EGM, now looking at the AGM. Whoops. Look at the Birdie!...

Travis Lundy

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)