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Hittite Microwave Anonim Ortaklık Message Board

  • fghton fghton Aug 22, 2005 7:45 PM Flag

    SUDN...Re SIMO

    OK...Here's my take on that one.

    Fabless Taiwanese designer of chips for the flash memory market. 7 straight quarters of revenue increases with the biggest ones coming in the 09/04Q of plus 50% then up 22% in the following quarter of 12/04. This was then followed by Q1/05 where revenues were down 33%?!

    Say what?! So just what type of company is SIMO?...The one with the two very huge quarters in 04 prior to the IPO, or the more normal one of the first quarter of 05 when revenues were down 33% from the proceeding quarter?

    Who the heck knows at this juncture. Could be somewhere in between...But we all know that the chip sector probably won't run away from us anytime soon so I'd keep an eye on Taiwan Semi pretty closely to measure the health of the basic industry in those parts. SIMO came public at five times estimated earnings for 05 so it wasn't exactly cheap.

    For me I'd probably wait a quarter or two to see results and find out exactly what one can expect from this company going forward. If for any reason other than an earnings shortfall the stock dips into the 8-9 area I'd probably take the plunge regardless.