IPOdesktop's  Instablog

Send Message
During the IPO season Francis Gaskins, editor of IPOdesktop.com, regularly appears on CNBC TV, Bloomberg, thestreet.com & other financial cable channels. On the day of the Visa IPO he appeared on four cable TV financial shows including Bloomberg & CNBC. Over the past five years he has... More
My company:
My blog:
  • KKR’s NXP Semiconductors IPO NOT a good deal 0 comments
    Jul 31, 2010 12:06 PM | about stocks: TXN, STM, NSM-RETIRED, ON, NXPI

    For valuation metrics, both Enterprise Value & 'standard'
    see IPOreport

    NXP Semiconductors NV (NASDAQ:NXPI), $4.85bb market cap
    at price range mid-point of $19.5
    $663mm IPO scheduled to price Friday, July 30

    > Post IPO NXPI has a negative net worth post-IPO of at least $3bb (?)
    > SEC filing issues
    . Interest charges aren’t broken out in the sec filing (haven’t seen this before)
    . EBITDA is not broken out in the sec filing (haven’t seen this before)
    NXPI is another KKR company seeking IPO money to repay debt, probably used to pay dividends to KKR, etc.

    > Week financials (see financials below)
    . Never earned money.  In the March 2010 quarter revenue jumped up 65% & gross margin increased to 37% from 10%
    . But operating profit was zero and net loss was 29% of revenue
    . Post IPO total debt will almost equal the projected market cap of $4.8bb
    > Doesn’t look like a good deal for investors at the current price range
    > Compare/contrast with other semiconductor companies

    NXPI overpriced on an EV/Earnings & EV/Tangible Bk Value

    For valuation metrics, both Enterprise Value & 'standardard'
    see IPOreport

Back To IPOdesktop's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.