|And with three trading days to go in the year, SIMO busts a move upward!|
I think the all time high is about $57. SIMO seems teed up to possibly have a very good year in 2018 after 6 quarters of so so doldrums (well, actually, a dip from $57 down to $40, and back up....I guess that's not doldrums, it was a bit scary).
There have been plenty of articles in the past 3 months that indicate NAND production in 2018 is supposed to increase meaningfully. We'll have to see how that translates into SIMO sales, but it should be good.
If any semiconductor investors read this I'd be interested on reading thoughts about whether SIMO is or is not an attractive acquisition candidate. Consolidation in the semiconductor space has been going on for the past couple of years. I always thought SIMO seems to have much better revenue growth prospects than your average semiconductor stock, and don't really get why SIMO trades at a 10x PE rather than 22x. All indications are that the NAND merchant controller market is a duopoly between SIMO and MRVL, and SIMO is gaining share from MRVL (ie. beating them in the competitive market spots). And it also seems like the trend is toward more merchant controllers (MRVL, SIMO, Phison) and less and less internally developed controllers (Samsung, Apple, MU, SK, WDC). I wonder why a large semiconductor company hasn't bought SIMO and captured that growth? I don't really mind, as SIMO's share price should respond well if/when the revenue growth becomes more visible, but I would like some day to get the 50% share pop that comes along with being acquired. MRVL's share price is doing well recently, it would probably make great sense for them to acquire SIMO, but I wonder if they can afford it at this point......
Well, Merry Xmas and Happy New Years to all SIMO investors, bring on the new year and the long awaited increase in NAND production!