Founder/CEO of ROK Advisory, ROK Advisory LLC

Ken S. Kim

Founder/CEO of ROK Advisory

ROK Advisory LLC

ROK is an independent research advisory firm. We guide you to minimize the information gap between foreign and local investors in Northeast Asia with a focus in Korea, Taiwan and Japan.

Independent Research Advisory Firm

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a> goal to be the #1 semi player in the world in danger</li>
<li>An internal business audit being performed which is an indication of what to do with strategy</li>
<li>
<a href="https://www.smartkarma.com/entities/taiwan-semiconductor-manufacturing-company" target="_blank" data-smartkarma-citation="entities:11230:1" rel="noopener">TSMC (2330 TT)</a> has always been the benchmark; does the focus change ?</li>
</ul>



Samsung Electronics (005930 KS) goal to be the #1 semi player in the world in danger
An internal business audit being performed which is an indication of what to do with strategy

TSMC (2330 TT) has always been the benchmark; does the focus change ?


The Conundrum for Samsung - What to Do Foundry?

Telco/Internet specialist

Kirk Boodry

Redex Research

<ul>
<li>The ARM sale to Nvidia has been cancelled but Softbank is charging full speed ahead on an IPO</li>
<li>That is unlikely to surface the value of a straight sale whilst the monetization rate at 15-20% would also be much lower</li>
<li>We remain cautious even with a 50% discount as NAV depends on volatile tech valuations but today's report provides some reassurance on ARM at least</li>
</ul>


The ARM sale to Nvidia has been cancelled but Softbank is charging full speed ahead on an IPO
That is unlikely to surface the value of a straight sale whilst the monetization rate at 15-20% would also be much lower
We remain cautious even with a 50% discount as NAV depends on volatile tech valuations but today's report provides some reassurance on ARM at least


Softbank Group - Q3 21 Results Reaction: ARM IPO Pivot Is the Big Reveal

<ul>
<li>Nvidia is reportedly close to throwing in the towel on the acquisition of ARM (although markets have assumed that outcome for awhile)</li>
<li>Softbank can still monetize the asset through an IPO but most likely at a lower valuation and with much fewer proceeds</li>
<li>We believe ARM was the primary source of buyback funds and with VF down $13bn QTD prospects for meaningful buybacks have been pushed out</li>
</ul>


Nvidia is reportedly close to throwing in the towel on the acquisition of ARM (although markets have assumed that outcome for awhile)
Softbank can still monetize the asset through an IPO but most likely at a lower valuation and with much fewer proceeds
We believe ARM was the primary source of buyback funds and with VF down $13bn QTD prospects for meaningful buybacks have been pushed out


Softbank Group - ARM News, Vision Fund Weakness Highlight That Share Buyback Will Be Back Loaded

Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Event-Driven

<ul>
<li>
<a href="https://www.bloomberg.com/news/articles/2022-01-25/nvidia-is-said-to-quietly-prepare-to-abandon-takeover-of-arm" target="_blank" rel="noopener"> Bloomberg reported</a> overnight that Nvidia was moving to accept reality and give up on the Arm merger. </li>
<li>This was largely expected but does deprive Softbank of a source of cash to conduct its buyback. </li>
<li>It also highlights the overall negative environment for Softbank’s traditional business “strategy”.</li>
</ul>



 Bloomberg reported overnight that Nvidia was moving to accept reality and give up on the Arm merger. 
This was largely expected but does deprive Softbank of a source of cash to conduct its buyback. 
It also highlights the overall negative environment for Softbank’s traditional business “strategy”.


Softbank – NVIDIA’s Abandonment of Arm and the Search for Credibility

Value Investing

Vladimir Dimitrov, CFA

<ul>
<li>From a market point of view, Intel's risk-reward profile appears more compelling than many of its high-flying peers.</li>
<li>From a business perspective, the company will likely continue to suffer in the short-term, however, strategic positioning is still strong.</li>
<li>What has historically been Intel's weak spot could prove to be its key competitive advantage over the coming years.</li>
</ul>


From a market point of view, Intel's risk-reward profile appears more compelling than many of its high-flying peers.
From a business perspective, the company will likely continue to suffer in the short-term, however, strategic positioning is still strong.
What has historically been Intel's weak spot could prove to be its key competitive advantage over the coming years.


Intel: Well-Positioned To Compete But Hardly A Short-Term Play

United States

NVIDIA Corporation designs, develops, and markets three dimensional (3D) graphics processors and related software.  The Company's products provide interactive 3D graphics to the mainstream personal computer market.

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NVIDIA Corp (NVDA US)

The Conundrum for Samsung - What to Do Foundry?

Samsung Electronics' believes that foundry will be a key point of future diversification and growth but it seems they have run into a problem. ...

Ken S. Kim

Softbank Group - Q3 21 Results Reaction: ARM IPO Pivot Is the Big Reveal

SBG will pivot to an ARM IPO after confirmation the NVDA sale was off. It continues to invest aggressively at VF2 with little to spare for...

Kirk Boodry

Softbank – NVIDIA’s Abandonment of Arm and the Search for Credibility

Bloomberg reported overnight that Nvidia was moving to accept reality and give up on the Arm merger. This highlights the overall negative...

Mio Kato

Intel: Well-Positioned To Compete But Hardly A Short-Term Play

From a market point of view, Intel's risk-reward profile appears more compelling than many of its high-flying peers. From a business perspective,...

Vladimir Dimitrov, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

The Conundrum for Samsung - What to Do Foundry?

Samsung Electronics' believes that foundry will be a key point of future diversification and growth but it seems they have run into a problem. ...

Ken S. Kim

Softbank Group - Q3 21 Results Reaction: ARM IPO Pivot Is the Big Reveal

SBG will pivot to an ARM IPO after confirmation the NVDA sale was off. It continues to invest aggressively at VF2 with little to spare for...

Kirk Boodry

Softbank Group - ARM News, Vision Fund Weakness Highlight That Share Buyback Will Be Back Loaded

Shares never captured Nvidia upside so the collapse of the ARM sale is not surprising but it also removes the primary source of funds for the share...

Kirk Boodry

Softbank – NVIDIA’s Abandonment of Arm and the Search for Credibility

Bloomberg reported overnight that Nvidia was moving to accept reality and give up on the Arm merger. This highlights the overall negative...

Mio Kato

Intel: Well-Positioned To Compete But Hardly A Short-Term Play

From a market point of view, Intel's risk-reward profile appears more compelling than many of its high-flying peers. From a business perspective,...

Vladimir Dimitrov, CFA