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Freescale Semiconductor, Ltd. Message Board

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  • Reply to

    BUY SWIR FSL going down

    by itradethereforiam Mar 24, 2014 4:31 PM

    yea right....

  • much better company

  • Reply to

    Way up, no volume

    by pan_ke_ji1968 Mar 20, 2014 2:03 PM

    Drexel Hamiliton posted new price target at $30

  • Reply to

    20 TOP FREESCALE EXECUTIVES ON CRASHED JET

    by jeepcreep111 Mar 8, 2014 11:13 AM

    I am reading strange things about theories on the involvement of this company and the disapearence.

  • Reply to

    20 TOP FREESCALE EXECUTIVES ON CRASHED JET

    by jeepcreep111 Mar 8, 2014 11:13 AM

    Most likely engineers. They travel a lot between plant and clients.

  • Reply to

    20 TOP FREESCALE EXECUTIVES ON CRASHED JET

    by jeepcreep111 Mar 8, 2014 11:13 AM

    We're getting a picture of a mother that raised a worthless pc of #$%$. Like to pull the legs off of insects do you?

  • Reply to

    20 TOP FREESCALE EXECUTIVES ON CRASHED JET

    by jeepcreep111 Mar 8, 2014 11:13 AM

    Where did you read that they were execs? I've seen them described as "employees".

    On Saturday, Texas-based Freescale Semiconductor confirmed that 20 employees were passengers on Flight 370. Twelve are from Malaysia and eight from China, the company said.

  • Senior VP and Gen Mgr sold 130,000 shares at 18-20 $/share last week from a total of 370,000 shares.
    CEO sold 270,000 shares at 18 from a total of 700,000 shares.

    It is their and the underwriting bankers job to identify a top in the market. So they sold the short term debt to the Wall Street.

  • Reply to

    Question for the accountants

    by dogsandlonghorns Jan 29, 2014 1:35 PM

    Anyway, I would wait for a pullback. Blackstone and the banksters that underwrited the past IPOs of FSL, timed the top of the market quite nicely. I would give 60% chance of a significant pullback in semiconductor investment cycle in the short term, few months (so, a good timing to tap the market for funds), and 40% this will not happen.

  • Reply to

    Question for the accountants

    by dogsandlonghorns Jan 29, 2014 1:35 PM

    Actually, close to 40 mil shares. Assuming that the quarterly interest will decrease to below 100 mil $ and the EBIT will grow to 610 mil $ per year, it means that 2014 will be a first year with positive bottom line, 210 to 250 mil $ net profit against 262 mil shares out there. So 0,8 to 1 $ EPS.

    But the 20$ price per share means more than 20x forward earnings. Kind of expensive.

  • Reply to

    Question for the accountants

    by dogsandlonghorns Jan 29, 2014 1:35 PM

    Am I reading this correctly? Blackstone is giving up 35 million shares to pay down debt?

    Sentiment: Strong Buy

  • Harry has posted a Charts of the Day video on FSL at TheTechTrader site noting: Freescale Semiconductor, Ltd. (FSL) had a very nice day on Wednesday. It formed a very big base over the past year, which was taken out with a thrust, it popped, coiled, pulled back, and then exploded only six cents off the high at 1.75, or 9.3%, on 24.5 million shares. That’s the biggest volume this stock has had since the IPO. Look for more upside, perhaps to the 23-25 range.

  • Reply to

    Question for the accountants

    by dogsandlonghorns Jan 29, 2014 1:35 PM

    i Appreciate thoughtful discourse here. way out may be to sell to a TXN who has balance sheet and scale to manage business from here

  • Reply to

    Question for the accountants

    by dogsandlonghorns Jan 29, 2014 1:35 PM

    I got the answer to that: refinance it again for another 5 years, pay 500 mil in fees and use whatever interest rates might be at that time (probably higher than last year). And keep working for another long years for the interest paid to the bank instead of investing in the business. That is death over long run.

    That while the competitive landscape changes every year. Now Intel wants really bad in embedded, telecom and IoT, LSI was bought, etc. Significant FSL competitors were bought by more cash potent companies that will have the power to invest. FSL will not have that power over the long run unless they delever faster by raising capital through equity. And I am pretty sure Blackstone will get some preferred stock to which dividends can be leaked while the common will be diluted.

  • Reply to

    Question for the accountants

    by dogsandlonghorns Jan 29, 2014 1:35 PM

    BTW, I do agree that the CFO Alan Campbell did a fine job.

  • Reply to

    Question for the accountants

    by dogsandlonghorns Jan 29, 2014 1:35 PM

    That is true. FSL has a bit more than 5 years until debt matures.
    In 2013, the EBITDA was 860 mil but that is not a fair assumption as a silly financial analyst asked in the press conference:
    "Rajvinda Gill - Needham
    Alan, just a question on the capital structure. If you are doing $893 million of trailing EBITDA and your current debt outstanding is around $6.4 billion, if you assume that you are on track, maybe to do $900 million of EBITDA or something greater next year, theoretically you could pay off the entire debt load in six years or 6.5 years"

    You see, this stupid analyst from Needham then run home and upgraded FSL from BUY to STRONG BUY with a price target of 25$.

    He is stupid because what he forgets is that you cannot ignore the I from the EBITDA. T (Taxes) was small in the past because of widespread GAAP losses. Taxes will amount for 20-30 mil per year. And I (interest) will be a bit more than 430 mil per year. So, out of the 850 mil EBITDA he is happy with in the future, actually only 400 mil per year could be used to pay down the debt. So, in 5-6 years until the debt matures, FSL will only get 2.5 bil $ cash from a total debt of 6.5 bil $.

    EBITDA does not include CapEx, dear Mr. Analyst from Needham. In one of the most intensive capital expenditure industry, even without manufacturing, assuming FSL will become fabless in some future. Today FSL is fab-lite. The depreciation amounts to 200 mil per year so that's your CapEx to keep the business running. That leaves only 200 mil per year for deleveraging so by 2020, FSL might only save less than 1.5 bil $. Who will pay the other 5 bil $?

  • Reply to

    Question for the accountants

    by dogsandlonghorns Jan 29, 2014 1:35 PM

    interesting comments, the company has termed out ~ 90% of the debt to 2020 at much lower interest and will pay off the remaining 10% of high coupon debt probably this year. the company is just starting to produce prodigous cash flow. no reason to sell equity to pay down debt in my view. tEspecially when they are outsourcing more AND raising margins as they do. CFO announced his retirment a couple weeks ago after doing great job getting financials in good shape.

    Sentiment: Strong Buy

  • Reply to

    Question for the accountants

    by dogsandlonghorns Jan 29, 2014 1:35 PM

    Yes, some people look at the balance sheet.
    Yes, FSL was the target of an LBO with the buyers being the Blackstone & others. As in other leveraged buyout, the Co was stripped of its 1 bil $ in cash and the money taken from banks to finance the purchase was put to the Co's balance sheet.

    Today, Blackstone owns 196 mil shares out of 258. 76% of shares. At the IPO, Blackstone used the proceeding from the sale of 25% of shares (60 mil shares x 18 $ IPO price, minus the discount of the underwriter), around 1 bil $, to pay some of the debt with high interest.

    Now, your question is: if or WILL Blackstone do the same with the other 200 mil shares? At 20 $ per share, the proceedings would be 4 bil $ out of 6.5 bil $ long term debt. If Blackstone would do that, the Co would be left with 2.5 bil $ in debt. Its market cap would be 260 mil share x 20 $ = 5.2 bil $ and it has today 3 bil assets. So the debt/market cap would be 50% or 83% debt/assets. On Semiconductor has a ratio of 25% debt to market cap.

    You can look at semiconductor companies based on these two ratios and see that TXN has 27% debt/assets. MCHP has 25%. So, all in all, the debt seems crushing. The FSL fabs are old and they will require investment that FSL will not be able to do.

    You as an investor have two things to consider:
    1) Will Blackstone give up all their 200 mil shares to clean up the balance sheet of FSL? Without any reward? Blackstone already wrote-down a significant loss in their balance sheet regarding the FSL assets. But they still hold 75% of FSL. I do not believe they will do the same act of philanthropy to use the secondary IPO proceedings to erase debt as they did for the first 25%. No, no, no, that is what I think.

    2) On a long run, 2-3 years down the road, will the lack of cash to invest in the business, in its hardware (manufacturing side) impact FSL? My opinion is that FSL will let the fabs extinct and become fabless. And pay more to TSMC to make their chips.

  • Anybody look at the balance sheet? Do any investors who use these Yahoo boards ever look at a balance sheet? This company has a lot of debt and negative net worth, which is unusual for an IC company - looks like a bunch of financial engineers using OPM got a hold of it. Any thoughts on any of this?

FSL
32.59+1.43(+4.59%)Jan 29 4:03 PMEST

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