Daily Brief TMT/Internet: Nexon, Micron Technology, Paychex Inc and more

In today’s briefing:

What We Should Know About the Nexon Inheritance Tax Dilemmas
Micron Technology Inc.: FValue Proposition, EUV Upside, i400 MicroSD Launch & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (07/22)
Paychex Inc.: Revenue Model, Product Enhancements, Switching Costs & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (07/22)

What We Should Know About the Nexon Inheritance Tax Dilemmas

A critical issue arose lately. The Nexon heirs do not have collateral for installment payment. The Korea NTS doesn’t accept shares of an unlisted company as collateral for tax payment.
So, the contingency plan is a direct equity sale. The more feasible would be for NXC to sell its stake in Nexon for the convenience of valuation and finding buyers.
The deal size is so large that it can come out in multiple block deals rather than a single buyer deal by the end of October.

Micron Technology delivered a decent quarter matching Wall Street expectations in terms of revenues but delivered an earnings beat.
The company’s performance has been driven by the forte in DRAM shipments to game, console, PC, and cloud customers.
Among new launches, Micron recently announced the launch of the i400 microSD card and partnership programs with IQ (Industrial Quotient).

Paychex had a strong quarter with growth driven by strong retention and sales.
The company delivered an all-around beat surpassing market expectations and there was an increase in total revenue as well as service revenue.
We provide the stock of Paychex Inc. a ‘Hold’ rating with a revision in the target price.

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