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Technology Stocks : Silicon Motion Inc. (SIMO)
SIMO 75.52-5.2%Jul 17 3:59 PM EDT

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To: franklin1 who wrote (2760)4/11/2024 10:38:09 AM
From: Elroy1 Recommendation

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Agree with that article sentiment, but my caveat to the "improving market" commentary is that I think last Q some of the revenue growth was the "bounce back" from the pandemic supply chain tightness driven over order 2021 and 2022, followed by a massive collapse (Q1-Q3 2023). To grow sequentially off the collapse is nothing special.

SIMO did over $915m in in both 2021 and 2022. This year they're looking like about $825m. That's hardly a great market recovery with alleged share gains.

I think In Q1 2024 SIMO will do EPS of about 70 cents. How that produces a $80 share price is beyond me. SIMO traditionally traded at about 12x EPS, today it's closer to 20x depending on what annual number you use. Operating expenses are much higher as a percent of revenue than previously, mainly because they're taping out 6nm chips now (traditionally 28nm or so).
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