mannerisms

Ruminations on the electronics industry from David Manners, Senior Components Editor on Electronics Weekly.

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.

$bn

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: hedgies, infineon, semiconductor companies

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