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Diodes Incorporated Message Board

  • thegozzlehead thegozzlehead Jun 3, 2006 5:21 PM Flag


    Nice writeup about the AG Edwards upgrade in Barrons. Always fun to see good press in a big-time mag.

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    • Diodes - DIOD-NNM
      Buy/Speculative - Price 32.69 on May 30
      by A.G. Edwards
      Upgrading from Hold to Buy based on valuation as well as strong growth prospects. Our 42 price objective assumes a 21 times price/earnings multiple applied to our 2007 EPS estimate of $1.97. Normally, one does not associate growth with the discrete component market that Diodes addresses. However, Diodes has managed to grow at a premium to both the semiconductor and discrete components industry for the past several years. [The specialty semiconductor maker] has been able to take market share for a couple of reasons.

      First, for the past ten years, management of Diodes has transformed it from a distributor of discrete components to being a vertically integrated packager of discrete components. The company's 1996 establishment of the Diodes-China (Shanghai) packaging joint venture was key to this transformation. Second, Diodes has benefited from competitors de-emphasizing discrete component production. Diodes has been there to help customers save on overall board space by making the investments necessary to shrink the size of discrete component packages. Lastly, Diodes has exceptionally high (34% of sales) exposure to consumer-electronics applications. Growth of discrete components in consumer electronics actually exceeds overall semiconductor growth in consumer electronics....

      Based on our channel checks, we believe Diodes should report second-quarter revenue at the high end or slightly ahead of earlier guidance (3% to 6% sequential revenue growth).

19.69-0.24(-1.20%)Aug 31 4:00 PMEDT