In today’s briefing:
- O2Micro’s “Reasonable” Homecoming Offer
- The Future of Ethereum: A Deflationary ETH, Sharding, and the Roadmap
- O2Micro Enters into a Definite Privatisation Agreement at US$5.00 Per ADS
- Tesla Q3 Deliveries Trail Even Sharply Reduced Market Consensus—And It’s Own Best Guess
- ACCO: Adjusting for Macroenvironment
- AXTI: The Fruit of a Preview
- #37 Exploring the new Cosmos
- The Commodity Report #71
- Bitcoin and Gold Correlation Hits Yearly High
- Sporting Crypto – October 3rd 2022: What does the Metaverse mean for Sports?
O2Micro’s “Reasonable” Homecoming Offer
- O2Micro International (OIIM US), an integrated circuits play, has announced a definitive privatisation transaction.
- The acquirer, led by the CEO and CFO of O2Micro, are offering US$5.00/ADS, a 68.9% premium to the undisturbed price.
- The Offer requires shareholders representing at least two-thirds of O2Micro vote FOR. Roughly 30% of shares out appear to be supportive. This Offer is expected to close in the 1Q23.
The Future of Ethereum: A Deflationary ETH, Sharding, and the Roadmap
- ETH is used for gas payment (transaction cost), part of gas payment is burned. When amount of ETH burned exceeds the amount of new issuance, ETH becomes a deflationary asset.
- Sharding is the next big update for Ethereum. With sharding, network throughput will increase from current 15 transactions/second to potential 100,000 tps.
- Long-Term roadmap of Ethereum: Merge (completed), Surge (sharding is expected on 2H 2023), Verge, Purge, and Splurge.
O2Micro Enters into a Definite Privatisation Agreement at US$5.00 Per ADS
- O2Micro International (OIIM US) entered into a definitive agreement for going private with FNOF Precious Honour Limited at US$5.00 per ADS, a 54.8% to the undisturbed price (17 March).
- Shareholders representing two-thirds of shares present and voting need to approve the deal. The rollover shareholders represent 16.90% of voting rights.
- The offer is attractive in the context of O2Micro’s weakening performance and grim market conditions. At the last close, the gross spread is 18.2%. Expect a 1Q23 deal close.
Tesla Q3 Deliveries Trail Even Sharply Reduced Market Consensus—And It’s Own Best Guess
- Q3 deliveries were an impressive 343,830, a bit better vs my cautious 331,104 est;
- But results trailed plunging market projections & Tesla’s own guidance by 20,000-50,000;
- Even worse, the shortfall meant sales trailed production by record 22,100.
ACCO: Adjusting for Macroenvironment
- The business climate has not improved for Acco Brands (ACCO) in Europe since the Company reported second quarter results, and thus could result in lower than expected third quarter numbers
- The macroenvironment has been volatile in a quarter dependent on back-to-school sales and more people working from their offices.
- We are updating our earnings model for the rest of the year. Our third quarter sales estimate is now $517.1 million
AXTI: The Fruit of a Preview
- Third quarter results could serve as an inflection point for AXT Inc. (AXTI) after the Company reported a rebound in gross margin in the second quarter
- When AXTI reported second quarter results, management described a design win that would be part of a consumer electronic device with a feature in a higher end model
- We believe the reference could have been to the iPhone 14 Pro and Pro Max having different a different display feature compared to the iPhone 14.
#37 Exploring the new Cosmos
- On a very fundamental level, blockchains are in the business of selling blockspace.
- Blockspace can be used to store transaction information or to perform computation through smart contracts hosted on chain.
- However, as more applications emerge and become more complex, blockspace becomes scarce and insufficient.
The Commodity Report #71
- We expect the oil crisis to worsen once economic activity resumes again. Till then some months will probably pass.
- Nevertheless, the industry hasn’t increased production significantly enough, and the SPR release by the Biden administration veiled the actual grim picture in the oil market.
- Those stories from Bloomberg show how relaxed the sentiment seems to be again. I have the feeling that this sentiment won’t age well at all.
Bitcoin and Gold Correlation Hits Yearly High
- Price Movements: Crypto markets performed better than traditional assets in Q3 despite a post-Merge September sell off.
- Market Liquidity: After Kucoin implemented a series of 5th anniversary contests, trade volume surged to all time highs. Exchanges are getting increasingly creative amid a widespread rout in trade volume.
- Derivatives: Luna Classic open interest tripled in September and funding rates turned deeply negative after Interpol issued a red notice for Do Kwon.
Sporting Crypto – October 3rd 2022: What does the Metaverse mean for Sports?
- Anything that augments your physical life, to the digital, is in some way or form linked to what currently is, and what will become, ‘The Metaverse’.
- So a Zoom call or a free world game — whilst they don’t wholly agree with the notion of interoperability or persistence —they still are in essence part of the Metaverse.
- Now, to give further context, there is the idea of ‘Metaverses’ — aka, Decentraland, Sandbox or any company building their own virtual world.
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