FN

Fabrinet

TMT


Presented:05/09/2024
Price:$218.01
Cap:$7.92B
Current Price:$255.50
Cap:$9.24B

Presented

Date05/09/2024
Price$218.01
Market Cap$7.92B
Ent Value$6.13B
P/E Ratio28.93x
Book Value$45.92
Div Yield0%
Shares O/S36.31M
Ave Daily Vol468,950
Short Int5.58%

Current

Price$255.50
Market Cap$9.24B
Fabrinet engages in the provision of optical packaging and electronic manufacturing services to original equipment manufacturers. The firm's engineering services include process design, failure analysis, reliability testing, tooling design, and real-time traceability system. Its manufacturing operations offer sensors, subsystems, customized optics, and optical modules and components. The company was founded by David Thomas Mitchell on August 12, 1999 and is headquartered in George Town, Cayman Islands.

Publicly traded companies mentioned herein: Fabrinet (FN), Lumentum Holdings Inc (LITE), NVIDIA Corp (NVDA)

Highlights

The presenter is short shares of Fabrinet (FN) believing it offers a good hedge to AI-driven long investments, with the company’s reliance on NVIDIA (NVDA) acting as a potential negative catalyst going forward. He likes the setup from here with 40% of FN’s revenue coming from the company being the sole supplier of transceivers to NVDA today. As competition comes, FN’s share is likely to fall which should impact growth given the rest of the company’s businesses (telecom, industrials, etc) may be in decline for a couple more quarters. 

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Idea Discussion

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