can you imagine the PE if they carried less debt by i) having engineered a more efficient rescue their Korean parent way back when and ii) having issued some equity when they had a chance (also way back when)? Sure, I'm waiting for February and am guardedly optimistic with Kelley, but I still can't get over the opportunity cost of hanging around this stock, and the magnitude of shareholder value that has been wasted away through years of inept management insulated by a negligent board.
For past 18 months I've been not-so-patiently waiting to unload my holding in AMKR. I had targeted $6, but now that we're almost there, I'm thinking there's even more upside.
could be some heavy duty short-covering. Methinks the primo investors are not quite ready to stick toes back in AMKR waters as long as KIM is involved.
In order for Kim to take this dog private at lowest possible cost, there is absolutely no incentive for the company to engineer equity appreciation. AMKR's board of directors has been blythly going along with this charade, and that's one reason why they should be jailed.
Sure. Utilization rates drive margins and cash flow. But that's a bit too obvious and historically AMKR not able to get there with existing footprint. Company needs to close some legacy factories and focus on high value biz.
the Bass Pro Shop near Chandler reports a big run on ammo. Could be that AMKR is getting ready to again shoot itself in the foot. BTW, Kelley made the brilliant observation at recent investor conference that to increase performance, AMKR needs to grow sales, which have been flat for 3 years. How will Kelley do that? Will he take a page out of Boruch's "fill the factories" playbook?
funny . . . maybe. But also very sad. AMKR has great technology and is critical to success of semi companies, but thanks to poor management and unwieldy debt load is unable to achieve operating margins & cash flow commensurate with its role in the industry. Quality investors have abandoned this company and no one cares.
Maybe a longshot, but I expect Q3 numbers to be overshadowed by much bigger news. Rumours flying that in a last-ditch effort to build revenue, AMKR will again tap the debt market and engineer a spectacular, highly leveraged acquisition of both Samsung and Apple.
Circular reasoning here. In order to get higher EV, the market cap needs to rise. That means the stock price has to rise. What's going to drive equity appreciation? There are too many constraints in AMKR's biz model plus an owner & board that by all accounts don't care. That's why the stock has languished for so many years.