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