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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
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  • 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

    SUMMARY
    > 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

    ENTERPRISE VALUE (NYSE:EV)
    NXPI overpriced on an EV/Earnings & EV/Tangible Bk Value

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

    Stocks: TXN, STM, NSM-RETIRED, ON, NXPI
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