In today’s briefing:
- Infocom (4348 JP) – Reports of an Exclusive Negotiation May Give Hints
- Detailed Summary of Today’s Second Trial Ruling in Chey Tae-Won’s Divorce Case Involving SK Inc
- Shift Up IPO: Valuation Insights
- TechChain Insights: Call with Himax, How New In-Car Displays Can Quadruple Chip Content Per Vehicle
- Tech Supply Chain Tracker (31-May-2024): Groundhog Tech eyes SEA growth as 5G expands.
- How to Own Lenovo at a Discount: BUY Legend Holdings Corp (3396 HK)
- Crowdstrike Holdings Inc (CRWD) – Friday, Mar 1, 2024
- Arlo Technologies Inc (ARLO) – Wednesday, Feb 28, 2024
- 2024 High Conviction Update: BILL Holdings, End of the Share Repurchase Program and Customer Churn
- Soluna Holdings, Inc. – Major Milestones Reached in Expansion
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Infocom (4348 JP) – Reports of an Exclusive Negotiation May Give Hints
- The entire saga here of Teijin Ltd (3401 JP)‘s disposal of its 55.1% stake in Infocom Corp (4348 JP) is being played out in the non-generally-public press.
- There is reportedly a new piece of writing out late Thursday which suggests an approach.
- I wrote about the “meaning” of words in Infocom (4348 JP) – The Meaning of ‘Binding Bids’ and ‘¥250bn’ and now there is more nuance to parse.
Detailed Summary of Today’s Second Trial Ruling in Chey Tae-Won’s Divorce Case Involving SK Inc
- The first trial in December 2022 ordered Chey to pay 67.5 billion KRW; today’s ruling increased this to 1.38 trillion KRW plus 2 billion KRW, including splitting SK Inc. shares.
- The increased settlement and SK Inc. share split could spark a management rights battle, causing SK Inc.’s stock price to jump as investors and shareholders react.
- It may take a year for the final verdict, making a sustained stock price increase unlikely. Yet, differences between trial rulings could alter Chey’s SK Inc. stake, sustaining market interest.
Shift Up IPO: Valuation Insights
- Shift Up (462870 KS) is Korea’s leading game development studio. It is seeking to raise up to US$320 million.
- We previously discussed the IPO in Shift Up IPO: The Investment Case.
- We examine the syndicate’s valuation methodology. Our analysis suggests that Shift Up is attractively valued in the IPO price range. We would participate in the IPO.
TechChain Insights: Call with Himax, How New In-Car Displays Can Quadruple Chip Content Per Vehicle
- We hosted a conference call recently with Himax management, the global leader in automotive touch display controllers; the company is experiencing a uniquely stronger automotive supply/demand environment than some peers.
- Discussed in detail how larger or more sophisticated interior displays can drive higher dollar content of display controllers per vehicle. We examine trending new car designs with much larger displays.
- We forecast an exponential jump-up in display controller content value per vehicle as beautiful display designs are becoming key USP for auto brands; Maintain our Structural Long rating for Himax.
Tech Supply Chain Tracker (31-May-2024): Groundhog Tech eyes SEA growth as 5G expands.
- Groundhog Tech focuses on expanding 5G in SE Asia to drive growth in the region’s tech industry
- Skymizer introduces ET2 LPU and LLM system platform to enter the chip IP market and enhance its offerings
- Samsung increases staff at Japan lab for chip packaging innovations, while Malaysia plans to invest in chip ecosystem development
How to Own Lenovo at a Discount: BUY Legend Holdings Corp (3396 HK)
- Legend Holdings Corp H (3396 HK) owns 31% of Lenovo (992 HK) , the number one global PC maker
- Lenovo is a leader selling AI enabled PC’s globally. Its server business is growing rapidly through strong demand for generative AI. Legend is the leading AI seed investor in China.
- Technical pattern strong for Lenovo reaching a 9 year high. Legend showing increasing momentum from an historic trough valuation level
Crowdstrike Holdings Inc (CRWD) – Friday, Mar 1, 2024
- Zscaler missed billings estimates and lowered full-year revenue guidance due to extended sales cycles and deal closures delays
- Declining performances in the cybersecurity sector indicate potential underperformance for Crowdstrike
- Author predicts potential significant miss in Crowdstrike’s upcoming earnings based on current trends in the market
This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.
Arlo Technologies Inc (ARLO) – Wednesday, Feb 28, 2024
- Anticipate significant downward revision in Arlo Technologies’ long-term revenue guidance
- Management’s lack of transparency regarding key performance indicators may have misled investors
- Initiate a short position before Feb. 29th guidance update to benefit from potential share price decline.
This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.
2024 High Conviction Update: BILL Holdings, End of the Share Repurchase Program and Customer Churn
- BILL Holdings shares significantly underperformed in 2024 with shares down ~37% year-to-date versus a 12% gain on the Nasdaq Composite Index.
- Shares saw sell-off post 3Q’FY24 earnings as results indicated a weak 4Q’FY24 guidance and customer churn while SMBs continue to be pressured by high inflation and interest rates.
- My bear case implies a $31 valuation (vs. prior $25 PT), based on ~2x FY25E EV/Revenue and bear case FY25E revenue of $1368M, representing ~40% downside vs. current levels.
Soluna Holdings, Inc. – Major Milestones Reached in Expansion
- 214MW of new projects to more than double the existing 75MW in operation and further builds on Soluna’s impressive corporate turnaround.
- In the past year, Soluna has launched its flagship Project Dorothy with both hosting (1A) and propriety mining (1B), moved to more profitable hosting contracts at its 25MW Project Sophie, began diversifying revenue through AI hosting at Project Sophie, and launched a new AI cloud venture and the Helix AI datacenter design.
- In addition, the company has been adjusted EBITDA positive for the past two quarters, while the balance sheet has improved.