Playing Hedgies

It’s a lovely sunny Tuesday afternoon so let’s play Hedgies – not Hedges – Hedgies i.e. what do we buy and what do we short?

Look at the market cap of Europe’s top semiconductor companies.


ARM           21

NXP            16

Infineon       14

ST                 8.6

Now ST has $8 billion of revenues,  NXP had revenues of $4.8 billion last year, Infineon did about $4 billion  and ARM has revenues of about $1 billion.

All except ST are profit-making.

NXP’s shares have doubled in a year – a year when the PE owners have divested their shareholdings – mainly to financial holdings companies.

Now, bearing in mind that financial types have weird ways of valuing things, what do you buy and what do you short?

Tags: infineon, semiconductor companies

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