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>Some more minor data points and highlights: KLIC (ball bonders) says that utilization is 75-80%, which is a good read on China despite the negative industrial headwind.</li>
<li>Allegro Microsystems is definitely scraping the bottom, and while Sanken (its distributor) is still increasing its inventory, I like the setup there.</li>
<li>Arrow Electronics (Distributor) says things are improving, which is a big counterpoint to everything else.</li>
</ul>


Some more minor data points and highlights: KLIC (ball bonders) says that utilization is 75-80%, which is a good read on China despite the negative industrial headwind.
Allegro Microsystems is definitely scraping the bottom, and while Sanken (its distributor) is still increasing its inventory, I like the setup there.
Arrow Electronics (Distributor) says things are improving, which is a big counterpoint to everything else.


Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>The revised/final True Wind Tender Offer for up to 19% of <a href="https://www.smartkarma.com/entities/sun-corp" target="_blank" data-smartkarma-citation="entities:10803:1" rel="noopener">Sun Corp (6736 JP)</a> ends this week. With the "excitement" the last two weeks, the SunCorp/CLBT ratio is higher.</li>
<li>The minimum threshold is relatively low. The Tender will most likely succeed with very high pro-ration. </li>
<li>For those on the edge, I discuss possibilities on the back end. It will be less liquid, but that may not be bad.</li>
</ul>


The revised/final True Wind Tender Offer for up to 19% of Sun Corp (6736 JP) ends this week. With the "excitement" the last two weeks, the SunCorp/CLBT ratio is higher.
The minimum threshold is relatively low. The Tender will most likely succeed with very high pro-ration. 
For those on the edge, I discuss possibilities on the back end. It will be less liquid, but that may not be bad.


To Tender Or Not - Gauging The Future of Sun Corp (6736)

<ul>
<li>On 10 June, Sun Corp subsidiary <a href="https://www.smartkarma.com/entities/cellebrite-di-ltd" target="_blank" data-smartkarma-citation="entities:37102:1" rel="noopener">Cellebrite DI (CLBT US)</a>'s SPAC sponsor True Wind Capital launched a Tender Offer for 19% of SunCorp at a premium but discount to NAV.</li>
<li>The price was too low. CLBT shares rose. They lifted the TOB price by 8% to ¥4750. Still too low. It was trading there. Now they have lifted to ¥5500.</li>
<li>Now a 49% premium to undisturbed, 29.4% premium to all-time high prior to the first tender. Changes in terms means this could get done. More bullish than it looks.</li>
</ul>


On 10 June, Sun Corp subsidiary Cellebrite DI (CLBT US)'s SPAC sponsor True Wind Capital launched a Tender Offer for 19% of SunCorp at a premium but discount to NAV.
The price was too low. CLBT shares rose. They lifted the TOB price by 8% to ¥4750. Still too low. It was trading there. Now they have lifted to ¥5500.
Now a 49% premium to undisturbed, 29.4% premium to all-time high prior to the first tender. Changes in terms means this could get done. More bullish than it looks.


True Wind Raises Partial Offer for Sun Corp Further, Leaving an Interesting Back End

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>Allegro MicroSystems has recently reported their fiscal fourth quarter and full year 2024 results, providing insights into their financial health and future expectations.</li><li>The company managed to surpass its fourth-quarter revenue and earnings per share (EPS) guidance despite facing a challenging macroeconomic environment, highlighting the dedication and efficiency of its team.</li><li>The fiscal year 2024 demonstrated a revenue growth of 8% and an EPS growth of 5%, with notable growth in e-Mobility at 38%, signifying strong market performance and strategic execution.</li></ul>

Allegro MicroSystems has recently reported their fiscal fourth quarter and full year 2024 results, providing insights into their financial health and future expectations.The company managed to surpass its fourth-quarter revenue and earnings per share (EPS) guidance despite facing a challenging macroeconomic environment, highlighting the dedication and efficiency of its team.The fiscal year 2024 demonstrated a revenue growth of 8% and an EPS growth of 5%, with notable growth in e-Mobility at 38%, signifying strong market performance and strategic execution.

Allegro MicroSystems Inc.: Electric Vehicle and Hybrid Market Growth in China As A Critical Growth Lever! - Major Drivers

<ul><li>This is our first report on sensor technology player, Allegro MicroSystems.</li><li>Sales in these strategic growth areas made up 56% of total sales, indicating a successful strategy execution focused on these specific sectors.</li><li>The company's automotive revenues grew 31% year-over-year, with the electrification of vehicles and Advanced Driver Assistance Systems adoption being the main growth drivers.</li></ul>

This is our first report on sensor technology player, Allegro MicroSystems.Sales in these strategic growth areas made up 56% of total sales, indicating a successful strategy execution focused on these specific sectors.The company's automotive revenues grew 31% year-over-year, with the electrification of vehicles and Advanced Driver Assistance Systems adoption being the main growth drivers.

Allegro MicroSystems: Initiation of Coverage - How Its Strategic Focus is Electrifying the Future of Transportation - Major 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)

Earnings: ALGM, LRCX, TOLEY, NVMI, ONTO

Hello, this is a slightly more relaxed week of earnings. I’m going to focus a lot on Allegro and then mention some high-level reads. I’ll keep...

Fabricated Knowledge

To Tender Or Not - Gauging The Future of Sun Corp (6736)

The Sun Corp Tender close nears (15 Aug). TWC is aiming to buy at least 5% but up to 19%. After recent volatility, 5% is an easier ask. But if you...

Travis Lundy

True Wind Raises Partial Offer for Sun Corp Further, Leaving an Interesting Back End

True Wind has raised its price again. Now ¥5500, above market. Rise in Price (29%) mimics rise in yen value of CLBT (27.2%). Minimum substantially...

Travis Lundy

Allegro MicroSystems Inc.: Electric Vehicle and Hybrid Market Growth in China As A Critical Growth Lever! - Major Drivers

Allegro MicroSystems has recently reported their fiscal fourth quarter and full year 2024 results, providing insights into their financial health...

Baptista Research

Allegro MicroSystems: Initiation of Coverage - How Its Strategic Focus is Electrifying the Future of Transportation - Major Drivers

This is our first report on sensor technology player, Allegro MicroSystems. Sales in these strategic growth areas made up 56% of total sales,...

Baptista Research

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