Equity Long-Short, Semiconductors, Fabricated Knowledge

Douglas O'Laughlin

Equity Long-Short, Semiconductors

Fabricated Knowledge

Learn more about the world's most important manufactured product. Meaningful insight, timely analysis, and an occasional investment idea.

Thematic (Sector/Industry)

<ul><li>This earnings season, Industrial semiconductor demand has been the biggest incremental softening in end market demand. That’s not surprising. </li><li>I have been talking about the FIFO (First-In, First-Out) cycle, and the only two remaining segments that have not had a meaningful correction are Industrial and Automotive.</li><li>We are now seeing the beginning of Industrial weakening.</li></ul>

This earnings season, Industrial semiconductor demand has been the biggest incremental softening in end market demand. That’s not surprising. I have been talking about the FIFO (First-In, First-Out) cycle, and the only two remaining segments that have not had a meaningful correction are Industrial and Automotive.We are now seeing the beginning of Industrial weakening.

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Effissimo Capital Management launched a partial Tender Offer for <a href="https://www.smartkarma.com/entities/sanken-electric-co-ltd" target="_blank" data-smartkarma-citation="entities:6073:1" rel="noopener">Sanken Electric (6707 JP)</a> five years ago. The goal was 20%. That tender failed but 6mos later they were at 19%.</li>
<li>Effissimo bought more, and the company bought back 20% of shares; Effissimo is at 36% now. In late 2022, Oasis bought 6.8%. Now 9.8%. Activists effectively control the vote.</li>
<li>In Q3 2024, Sanken de-consolidated <a href="https://www.smartkarma.com/entities/allegro-microsystems-inc" target="_blank" data-smartkarma-citation="entities:29707:1" rel="noopener">Allegro MicroSystems (ALGM US)</a> but their stake is still 2x Sanken's market cap. The "core" business is weak, but should grow. The question is pressure.</li>
</ul>


Effissimo Capital Management launched a partial Tender Offer for Sanken Electric (6707 JP) five years ago. The goal was 20%. That tender failed but 6mos later they were at 19%.
Effissimo bought more, and the company bought back 20% of shares; Effissimo is at 36% now. In late 2022, Oasis bought 6.8%. Now 9.8%. Activists effectively control the vote.
In Q3 2024, Sanken de-consolidated Allegro MicroSystems (ALGM US) but their stake is still 2x Sanken's market cap. The "core" business is weak, but should grow. The question is pressure.


[Japan Activism] Activists Control Sanken (6707 JP) Going Forward - Watch For Better Plans

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>When we look at the broader performance of Allegro MicroSystems, the results indicate both positive and challenging aspects of the company’s current situation.</li><li>From a financial perspective, Allegro delivered a solid performance in its first quarter of fiscal year 2026.</li><li>The company reported sales of $203 million and a non-GAAP earnings per share of $0.09, which was above the midpoint of their guidance range.</li></ul>

When we look at the broader performance of Allegro MicroSystems, the results indicate both positive and challenging aspects of the company’s current situation.From a financial perspective, Allegro delivered a solid performance in its first quarter of fiscal year 2026.The company reported sales of $203 million and a non-GAAP earnings per share of $0.09, which was above the midpoint of their guidance range.

Allegro MicroSystems: Fueling EV & ADAS Growth with Strategic Design Wins!

<ul><li>Allegro MicroSystems has reported its financial results for the fourth quarter and the full fiscal year 2025.</li><li>The company is focused on strengthening its market position through innovation and operational efficiencies.</li><li>President and CEO Mike Doogue, who ascended from being the company's first Chief Technology Officer, emphasized a strategic focus on expanding product capabilities and extending Allegro's footprint in lucrative markets such as automotive, industrial, and emerging sectors like medical and robotics.</li></ul>

Allegro MicroSystems has reported its financial results for the fourth quarter and the full fiscal year 2025.The company is focused on strengthening its market position through innovation and operational efficiencies.President and CEO Mike Doogue, who ascended from being the company's first Chief Technology Officer, emphasized a strategic focus on expanding product capabilities and extending Allegro's footprint in lucrative markets such as automotive, industrial, and emerging sectors like medical and robotics.

Allegro MicroSystems: China-for-China Strategy to Harness Growth In One Of The World's Largest Semiconductor Markets!

<ul><li>Allegro MicroSystems reported third-quarter fiscal year 2025 revenues of $178 million, exceeding the midpoint of its guidance.</li><li>The company posted a non-GAAP earnings per share of $0.07, also above the anticipated outlook.</li><li>Despite these accomplishments, the company's quarterly sales declined 5% sequentially and 30% year-over year.</li></ul>

Allegro MicroSystems reported third-quarter fiscal year 2025 revenues of $178 million, exceeding the midpoint of its guidance.The company posted a non-GAAP earnings per share of $0.07, also above the anticipated outlook.Despite these accomplishments, the company's quarterly sales declined 5% sequentially and 30% year-over year.

Allegro MicroSystems: The E-Mobility, ADAS Integration & Other Major Growth Drivers

Japan

Allegro Microsystems, Inc. develops advanced semiconductor devices. The Company provides power and sensing solutions for motion control. Allegro Microsystems serves customers worldwide.

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Allegro MicroSystems (ALGM US)

Semiconductor Cycles: Industrial and EVs

Plus my new taxonomy of cycles! Where I think each end market is in the cycle. This earnings season, Industrial semiconductor demand has been the...

Fabricated Knowledge

[Japan Activism] Activists Control Sanken (6707 JP) Going Forward - Watch For Better Plans

Sanken Electric is 45-46% owned by two declared activists and there is probably more than 50% held by those two and hangers-on. It is cheap to its...

Travis Lundy

Allegro MicroSystems: Fueling EV & ADAS Growth with Strategic Design Wins!

When we look at the broader performance of Allegro MicroSystems, the results indicate both positive and challenging aspects of the company’s...

Baptista Research

Allegro MicroSystems: China-for-China Strategy to Harness Growth In One Of The World's Largest Semiconductor Markets!

Allegro MicroSystems has reported its financial results for the fourth quarter and the full fiscal year 2025. The company is focused on...

Baptista Research

Allegro MicroSystems: The E-Mobility, ADAS Integration & Other Major Growth Drivers

Allegro MicroSystems reported third-quarter fiscal year 2025 revenues of $178 million, exceeding the midpoint of its guidance. The company posted...

Baptista Research

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