MX
MagnaChip Semiconductor Corporation
TMT
04/10/2014
Presented
| Date | 04/08/2014 |
| Price | $13.89 |
| Market Cap | $0.49B |
| Ent Value | $0.55B |
| P/E Ratio | N/A |
| Book Value | $0.70 |
| Div Yield | 23.8% |
| Shares O/S | 34.95M |
| Ave Daily Vol | 390,000 |
| Short Int | 0.42% |
Current
| Price | $4.73 |
| Market Cap | $0.18B |
| MagnaChip Semiconductor Corporation designs and manufactures analog and mixed-signal semiconductor products for high-volume consumer applications. It operates in three segments: Display Solutions, Power Solutions, and Semiconductor Manufacturing Services. The Display Solutions segment offers source and gate drivers, and timing controllers that cover a range of flat panel displays used in liquid crystal displays (LCDs), light emitting diodes (LEDs), 3D and organic light emitting diode televisions and displays, notebooks, and mobile communications and entertainment devices. The Power Solutions segment develop, manufactures, and markets power management solutions, including metal oxide semiconductor field effect transistors, power modules, analog switches, LED drivers, DC-DC converters, voice coil motor drivers, and linear regulators. This segment offers its products for a range of devices, including LCD, LED, 3D televisions, smartphones, mobile phones, desktop PCs, notebooks, tablet PCs, and other consumer electronics, as well as for industrial applications, such as power suppliers, LED lighting, and home appliances. The Semiconductor Manufacturing Services segment manufactures various products comprising display drivers, LED drivers, audio encoding and decoding devices, microcontrollers, touch screen controllers, RF switches, park distance control sensors for automotives, electronic tag memories, and power management semiconductors. This segment offers semiconductor manufacturing services to fabless analog and mixed-signal semiconductor companies. MagnaChip Semiconductor Corporation provides its products and services to consumer electronics OEMs, subsystem designers, and contract manufacturers through a direct sales force, as well as through a network of authorized agents and distributors in the United States, Korea, Taiwan, China, Japan, Hong Kong, and Macau. The company is headquartered in Seoul, South Korea. |
Highlights
MagnaChip (MX) has had its share of issues over the past few years. In 2008/ 2009 the company filed for bankruptcy protection, and when Samsung announced supply chain issues in 2013 shares of MX tumbled to the high teens. Most recently, an internal audit at MX forced them to delay earnings. Investors are still waiting for a detailed explanation and a broad restatement of results going back to 2011’s annual report. The presenter believes the worst is behind the global analog and mixed signal company, and expects the accounting issues to be sorted out over the next four-to-five months. He is long shares due to how “absurdly cheap” the current valuation is, and believes shares are worth at least 9-10x earnings ($22-25).
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