“Demand for assembly and test services is booming in China, particularly for advanced products employing wafer-level, die stacking and package stacking technology,” said Steve Kelley, Amkor’s president and chief executive officer. “Our Shanghai operation is Amkor’s second-largest factory by revenue, and offers the most advanced OSAT technologies in China for both local and international customers. This investment reflects the long term strength of our mobile communications business, and the increasingly important role of the Chinese market in the global semiconductor supply chain.”
In their Q1 earnings call the company stated, "First quarter revenues more than doubled year-on-year at our greater China fabless customers. Growing in China and Taiwan is very important for the company since it broadens our exposure to the mid-range and entry-level segments of the mobile device market."
We should get an update next week in the Q2 earnings call on how the company's China business is doing.
Sentiment: Strong Buy
Let's see if I understand this correctly:
1. OSAT is an extremely capital intensive industry that has failed to meaningfully consolidate in the 16 years AMKR has been public.
2. AMKR's puny operating margins are not consistent with a cap intensive company that supposedly is a purveyor of high end packaging technology critical to 'enabling an electronic world'.
3. AMKR has been saddled with expensive debt since rescuing its Korean sibling, Anam, 15 years ago.
4. Kim has done quite well as major a debt investor in AMKR; neither income nor wealth generation seem to be a consideration.
5. For all intents and purposes, AMKR is a private company. There has been no evidence that executive management is interested in building shareholder value.
6. Conversely, I am at a loss to understand how AMKR's directors, which have consistently abdicated their fiduciary responsibility to represent shareholder interests, can honestly consider themselves as stewards of a public company.
7. Did I miss anything?
Just picked up another 2,000 shares at $5.42. Stock is at less than 7 times 2016 earnings. EPS should pick up further in 2017 after the new K5 plant comes on line late next year. I think the stock is down because PC sales are weak. Apparently investors don't realize that PC's are only about 10% of AMKR's business. This company is mostly mobile and automotive.
Sentiment: Strong Buy
Just started building a position in AMKR with a buy of 2000 shares at $5.61. Have no idea if this is the bottom, will buy more if it continues to drop.
Sentiment: Strong Buy
What the hell?
Why so many ratings of this post?
You morons do know you are rating things said by the ceo and not by byronangel?
From the last transcript - "Last question is if you look at your P/E ratio is about four and you can look at your EBITDA is about four. So can you just explain to us the philosophy public versus private, because I don't think you're getting any benefit out of being a public company."
I think this a very good news for AMKR, that QCOM , SMIC, Huawei, & imec to develop next generation CMOS logic technology in China. Ist phase will develop 14nm CMOS technology for mass production. AMKR rec'd award from SMIC more than once. QCOM is one of the largest customer of AMKR. AMKR has equipment to do packaging for 14nm without spending a lot of $. Next year AMKR's FCF may still be negative due to K5+. I hope 2017 and beyond AMKR will have some significant FCF to reduce debt. The stock is cheap due to negative FCF , high debt and KIM owns more than 50% of the common sh. (this is a almost private company)
Besides the old over-used replies that he pulled off the shelf to the question of being a public company, I still feel that the Kim Family would sell the company, if they got their price. Until they pay a meaningful dividend, my guess is that is an option for the Kim end game that they want to keep on the table. What market level benefit do they currently get? The so-so salaries they receive certainly does not reach the level of return on the billion+ they have invested? By having complete control of the company but it being a public company allows them to sell if they ever got an offer they liked and lowers their risk. If they took it private they would have to carry the current billion debt, plus what it would take to buy out the remaining public shares (a billion+) themselves. They would be assuming 100% of the risk with little potential increase in reward and burdening the company with a huge debt that in a bad downturn could bankrupt the company. Selling the company soon seem unlikely but I guess that is a door they do not want to close. Perhaps it's in the five year plan.
Easy to fix. Just to get few Tier-2 customers which they are working on. Tech. support & Customer services is important , but I think Guan Xi is more important. When AMKR can get Mediatech , Rockchip ,and Allwinner's biz. , you will see the Street's response.
At this price level management really needs to help stabilize the share price and act on the opportunity to reduce the share count by spending the remaining 91 million in the approved stock buy-back program. They need to do more that just reduce cap ex.
Why on earth is this down from 10 to under 5? I am looking at the valuation and it makes no sense. I believe it should be worth $10, what do you think.
I just noticed from the new presentation material, that they must sign some new credit deal/deals with the bank/banks. They don't have term-loans due in 2016 or 2017 anymore. They are keeping the cash on hand , and roll all debt to short-term loan due 2018 for $120m, 2019 for $300m and 2020 for $175m. Total debt did not change.
I think the recent weakness may relate to Samsung. Their new Galaxy phone isn't taking any market share from Apple. Slow rollout as they have had some manufacturing issues with the curved screen. Sales are expected to increase over the coming months as the new models are launched in more countries.
I believe more than 50% of their revenue is related to mobile devices such as smart phones and tablets so they would be pulling for healthy Samsung sales to soak up capacity.
The stock is pretty cheap down here. Around a 16% FCF yield on the common if they hit the reduced 2016
eps estimates and capex stays the same without any further expansion spending in Korea.
I put an order in at $5.43, but it did not trip today. I will have another look on Monday.
What's up with all the thumbs down on this Board?? A bunch of babies that hide behind a keyboard. Cowards! Any one care to explain themselves??