Value Hound
Long/short equity, small-cap, tech, solar

TowerJazz: The Tragedy Of Locked Value

Executive summary:

  • TowerJazz has substantial growth ahead, with multiple opportunities.
  • Unfortunately, dilution and debt are blocking TowerJazz's value.
  • Until dilution and debt issues are solved, I'm staying on the sidelines.


TowerJazz (NASDAQ:TSEM) is an Israeli-based specialty foundry. For those who aren't familiar with the specialty foundry market, I'll begin with a brief introduction.

Specialty Foundries

The specialty foundry market supplies chips to all the semiconductor design houses that don't require cutting-edge chip fabrication technologies. That includes analog chips, such as power management chips, radio chips, controllers, audio chips, etc. Here's an easy-to-understand slide that compares the analog and digital chip content of the iPhone:

(click to enlarge)

Source: TowerJazz investor presentation.

Now that the top four

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details