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Silicon Motion Technology Corp. Message Board

  • beachinv beachinv Mar 28, 2013 11:24 AM Flag

    Time for Mgmt to step up

    They need to start buying back more shares...Also need to get out and talk with more funds/institutions....

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    • I picked up some more shares on today's pullback. Think it is oversold now...Ready for bounce soon...

    • That's actually a worrisome issue because they attended and made presentations at three "events" this month of March....unfortunately, none of the presentations are on their website...

      • 1 Reply to spectracide
      • I do not think those presentations have issues with them. The share prices did not move immediately after each of the presentations (and it actually went up after the first one). Since all 3 were given within 8 days, it is likely that the contents were the same for all 3. Finally, the last 2 were given just before Samsung S4 launch so they probably could not even say that they had lost S4 tranceiver business even it they did (because Samsung should have a very tight confidentiality requirement with SIMO).

        People have been worried about SIMO's transceiver business most, and the Street has been wrong before. This time last year, they said SIMO would lose its transciver business because QCOM came out with more integrated solutions that could be cheaper. These idiots do not understand that a company like Samsung has to have a strategy that diversified its component sources. Since QCOM rules the baseband business through integrating it into their processor, and since Samsung is crystal clear on having its own processor, Samsung will use 3rd party transceiver even that means a higher product cost, in at least some of its smartphone. This allows then at least to negotiate better price with QCOM. This means growth opportunity is there for SIMO.

        One of the flash makers recorded a better than expected quarter very recently, which means that flash was tight, but also market was reasonably good. There were also news that a couple of flash makers plan to increase production. SIMO controllers got a big market share in this space so the base looks solid.

        So why shares keeps sliding down? My personal opinion is that SIMO provides too little update too infrequently. Management does not see the need to come out repeating every other week so traders are not excited.

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