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Andrew Schmitt » Comments » LSI

  • Semis With Highest, Lowest Production To Sales Ratio [View article]
    Trent:

    Big error here. The production effect and the impact on gross margin applies only to companies that own their fab. Fabless companies do not see Gross margin move as 2000 wafers from TSMC costs the same as 1500.

    You need to remove all fabless revenue to make this a meaningful study.
    Jun 04 17:19 pm |Rating: 0 0 |Link to Comment
  • More Negativity on the LSI Logic-Agere Merger [View article]
    Maybe we don't disagree.

    The companies that are best candidates for mergers are the least desirable for private buyout.

    I just don't see how the LSI/Agere merger is even related to a private party takeover...
    Dec 07 10:13 am |Rating: 0 0 |Link to Comment
  • More Negativity on the LSI Logic-Agere Merger [View article]
    I like your stuff but you are reaching here.

    First of all, you should figure in a fully priced Agere - the stock won't reach buyout value till the deal closes.

    Second, you are ignoring the larged fixed opex cost reductions that come with such a combination. This will make the EBITDA returns look better.

    You are applying the same private buyout logic to a merger, which doesn't work.

    This makes a lot of sense to me, and I expect to see more.
    Dec 06 20:17 pm |Rating: 0 0 |Link to Comment
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