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AXT, Inc. (AXTI)

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
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8.15-0.53 (-6.11%)
At close: 1:00PM EST
8.15 0.00 (0.00%)
After hours: 01:59PM EST
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  • M
    Microchap
    From recent initiating coverage; While typically it can be hard to realize benefits from asset replacement values (without a sale), the potential listing of the company’s subsidiaries on the STAR market is a vehicle that could yield such a result. Specifically, AXT is attempting to list one of its subsidiaries, Tongmei (AXTI owns ~86% of the company), on the STAR market. In preparation for this listing, the company sold ~7.3% of that company to private equity for approximately $49M. This preliminary valuation (which would imply Tongmei alone is worth ~$624M) in our view, partly reflects the premium Chinese investors are willing to pay for technology assets (along with any mispricing of AXTI’s assets). Regardless, a valuation set at even a fraction of the price private equity paid for a fraction of the company, could unlock significant value for AXTI shareholders with the whole of AXTI being valued at around half the proposed value of Tongmei.
  • V
    V
    part 1) Folks, listen to the CC.  People, analysts included, need to see the forest from the trees.  Yes, it's the job of analysts to ask questions.  But their questions are mostly nitpicking.  Remember, this is a small business that is fast growing, lumpy, and not everything can be modeled smoothly.  And yes, these guys are technologists and not smooth talking Wall street types.  The forest is that the many stars are aligning.  CFO says, in his many years at $AXTI, never has visibility with clients been as clear as now.  All sectors of $AXTI's business are rocking.  Revenues have increased 46% in the last nine months vs 2020.  Again, 46%!!  Analysts should have been asking, ok, now that capacity is increasing due to new manufacturing facility, where will revenues be 3, 5 years from now?  And in these newer markets, where $AXTI's technology can create a moat, how will margins look?  We heard Morris talk so candidly about all the opportunities that lie ahead.  Naturally, they will play down sales expectations for 2022, saying growth of 15-20%, so that they can easily beat expectations.  I am looking forward to breakthrough quarters and years ahead.
  • M
    Microchap
    I read all the analyst reports. Some price target downgrades. They were disappointed by the margin decline which is due to gallium price increase and expenses prepping for $1B IPO. Let me say that again. $1B IPO. Of course there are complexities around how that value transfers to the mothership but I repeat, $1B IPO. The analysts acknowledge the STAR story and mega trends are still in tact. $1B IPO. $1B IPO, everyone together now…
  • T
    Tim
    acmr star listing announced for Nov 8. Bodes well for axti. tack on projected growth of up to 20% revenue in 2022. Should start to see growth in stock. 10+ can't be far behind.
  • M
    Microchap
    Called was amazing to me. Already talking about big growth next year. typically a down quarter next quarter and guided flat. Going to be growing fast on all cylinders right into the IPO. That’s the play here.
  • c
    chris
    Wish I had a boat load of money 💰. I would buy more shares at this price.
  • p
    pullin-gs
    Regarding drop in price.....I'm very surprised nobody has mentioned the SEC filing for 60million mixed-shelf. That is dilution plain and simple. I expect some of the big sales that have transpired since 7/30/2021 SEC filing are AXTI sales of their own outstanding shares (thus adding to float.....and diluting my/your share price).
    Anyway, here is Morris's reply when asked about shelf in last shareholder conference call:
    "It's [the shelf] one more tool in the fire for how we get all this stuff done. And it's being driven by very strong demand for indium phosphide, a good demand for gallium arsenide and then on the horizon, gallium arsenide doubling or tripling in terms of the TAM. So that's why I used the word renaissance earlier.
    There's just a lot going on. So that's why we put the shelf in place."
    It has nothing to do with new listing.

    His answer is a punt....did not even address shelf. If demand is so good why the need to dupe shareholders out of their profits by selling/diluting stock when revenues are growing at almost 40% year over year?

    I sold half my shares when it dropped below 10.
  • c
    chris
    Gallium nitride is big.
  • h
    harbormate
    Does anyone remember when last quarters results posted.?
    I want to look back and see what the increase was the next day?

    Thank you
  • M
    Microchap
    I am quite heavy on this name. Not adding unless below 12x 2022 = $35. That was the multiple I bought into SPT at $26 (now over $130) and DT at $35 (now close to $80 and I think is a forever hold). All three have a lot in common. DT and FROG have a lot more in common.
  • c
    chris
    Had an uneasy feeling about axti. although a decent quarter, they did not knock it out of the park.... no rewards for a double or triple. I’m bullish, love the company and their products but unless you kill it, analyst don’t respond favorably... just not sexy enough I suppose.
    Bullish
  • F
    Fish
    Trading above 50dma, RSI above 50 and pointing higher, broke through down sloping resistance line, very bullish chart and technicals.
    Bullish
  • s
    scott
    will be up over 9 tomorrow
  • c
    chris
    Thought it would be much better
  • c
    chris
    Should be an outstanding quarter
  • c
    chris
    Going to be a great earnings report
  • s
    scott
    eps 13 cents nice
  • C
    Casey
    Come on AXTI! Looking for a boomer tomorrow.
    Bullish
  • m
    myownstimulusplan
    First Call released annual estimates for AXT Inc of $0.40. This is 476.07% higher than last year's results for the year.
    Bullish
  • c
    chris
    Good entry point...
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