Mon, Sep. 28, 3:00 PM
- Plenty of high-beta tech names are getting clobbered as the Nasdaq posts a 3% drop amid a broad market selloff.
- Firms down over 5% include memory giant Micron (MU -5.6%), salvage auction site Liquidity Services (LQDT -10.5%), industrial measurement toolmaker Perceptron (PRCP -12.1%), cloud healthcare software provider Castlight (CSLT -5.4%), CDN owner Limelight (LLNW -8.6%), mortgage origination software firm Ellie Mae (ELLI -6.1%), ultracapacitor maker Maxwell (MXWL -8.5%), Korean analog/mixed-signal chipmaker MagnaChip (MX -9.3%), online loan marketplace LendingTree (TREE -7.9%), and online ad retargeting firm Criteo (CRTO -5.9%).
- Micron's decline comes ahead of its Thursday FQ4 report. Nomura predicted today FQ4 results will miss consensus, and that FQ1 will also be weak. "While an estimate cut is well understood, we believe Micron’s stock will continue to track DRAM/NAND pricing, which is trending lower into the peak of the build season.” Cowen, on the other hand, argued FQ4 will be the bottom, and stated checks point to Samsung "pulling back meaningfully on capex."
- See also: Solar stocks, GoPro, Mindbody, Qorvo
Mon, Aug. 31, 10:56 AM
- Pleasant Lake Partners, which currently owns 9.9% of MagnaChip (MX +5.7%) has offered to buy the Korean analog/mixed-signal chipmaker for $10/share in cash (roughly $345M). The offer is "subject to confirmatory due diligence and the negotiation of definitive transaction documents." (13D filing)
- Pleasant Lake: "[T]he accelerating pace of consolidation in the semiconductor industry, coupled with what believe are Magnachip’s strategically valuable assets and intellectual property, has led us to make this Proposal. We have consistently heard from other shareholders that the status quo at Magnachip is not acceptable and that the Company, in whole or in part, would be worth significantly more to strategic acquirers than as a standalone entity."
- MagnaChip has risen to $8.17. Pleasant Lake's proposal letter offers few details on how a purchase will be financed. The firm has previously argued MagnaChip's fabs and IP have value to potential acquirers.
- Last month: MagnaChip exploring strategic alternatives, including potential sale
Mon, Aug. 24, 4:29 PM
- The Nasdaq opened down 7.5%, furiously rallied almost to breakeven, and then sold off again in the afternoon to close down 3.8%. Some tech stocks managed to rise nonetheless, while many others posted 5%+ declines.
- Major decliners included Citrix (CTXS -9.3%), Solera (SLH -8.9%), NCR (NCR -7.8%), Nuance (NUAN -6.9%), Infinera (INFN -6.4%), HomeAway (AWAY -6.6%), MagnaChip (MX -6.4%), Yandex (YNDX -7.5%), Neustar (NSR -6%), Ebix (EBIX -7.3%), SGI (SGI -8%), Monster (MWW -7.5%), Silver Spring (SSNI -6.6%), Perion (PERI -11%), and Synchronoss (SNCR -7.5%).
- Solera's decline comes 4 days after the company confirmed it's exploring strategic alternatives, and 5 days after Bloomberg reported a sale is being explored. Yandex has been hit hard in recent weeks by the ruble and crude oil's decline. Infinera is down 20% over the last 3 trading days, albeit still up 34% YTD.
- See also: Morning decliners, Chinese tech stocks, large-cap decliners
Tue, Aug. 18, 2:23 PM
- Having already felt the effects of a string of downbeat earnings reports, chip stocks are underperforming today amid a 0.5% drop for the Nasdaq. The Philadelphia Semi Index (SOXX -1.7%) is near its 2015 lows, and now down 9% YTD. Fresh Chinese macro fears - the Shanghai and Shenzhen exchanges both fell sharply overnight - could be playing a role.
- Micron (MU -4.9%), 4 days removed from hosting its analyst day and 1 day removed from seeing a slew of analysts respond, is among the names down strongly. BofA/Merrill downgraded NAND flash rival SanDisk and NAND controller vendor Silicon Motion to Underperform this morning, which citing Micron and SK Hynix's capex plans - Hynix says it's thinking of spending $39B on fab investments.
- Other major decliners that are tied to the industry include Skyworks (SWKS -5.3%), Qorvo (QRVO -3.6%), IDT (IDTI -6.3%), AppliedMicro (AMCC -4.3%), ChipMOS (IMOS -4.3%), Rambus (RMBS -3.8%), Silicon Labs (SLAB -3.1%), Semtech (SMTC -3.5%), MagnaChip (MX -4.4%), and Amkor (AMKR -3.6%).
- Needless to say, multiples for many hard-hit names have come down considerably over the last two months.
- Chips ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Thu, Aug. 6, 4:40 PM
Fri, Jul. 24, 12:58 PM
- Buried within the recently-filed proxy materials for MagnaChip's (MX +2%) annual meeting: The company discloses its board has formed a strategic review committee that is "reviewing, considering and evaluating strategic alternatives that may be available to the Company, including the potential sale of all or a substantial portion of the Company."
- A long list of small and mid-cap chipmakers have been acquired amid the industry's ongoing M&A wave. MagnaChip investor Pleasant Lake Partners (9.95% stake) recently called on the company to "redouble its efforts and be proactive in unlocking and enhancing shareholder value."
Thu, Jul. 16, 2:45 PM
- Chip stocks are missing out on a market rally (SOXX -0.2%) after Intel, TSMC, and Fairchild posted Q2 results. The Nasdaq is up 1.1%, and the S&P 0.7%.
- Intel (down 0.2%) beat estimates - EPS benefited from a low tax rate - offered above-consensus guidance, cut its 2015 capex budget by $1B, and pushed out the ETA for its first 10nm CPUs to 2H17.
- TSMC (up 0.8%) beat estimates and offered solid Q3 guidance, but also provided cautious industry commentary, and forecast global chip sales will rise only 3% in 2015. A strong dollar, weak PC sales, and slowing emerging markets smartphone growth have been weighing on industry growth.
- Fairchild (FCS -10.4%) missed estimates and guided for Q3 revenue of $355M-$375M, below a $383.7M consensus. The analog chipmaker blames the Q2 miss on "some mobile and appliance customers, the wireless telecom sector as well as general market distribution."
- Chip equipment stocks are especially hard-hit thanks to Intel's capex cut/10nm push-out, but various chip developers are also down. Notable decliners include Fairchild peers ON Semi (ON -2.3%), MagnaChip (MX -2.3%), Pericom (PSEM -3.4%), Silicon Labs (SLAB -2.1%), and Intersil (ISIL -2.4%).
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Fri, Jul. 10, 5:05 PM
- After reviewing its governance structure and talking with shareholders - one of whom had submitted a director slate, and has now withdrawn it - MagnaChip (NYSE:MX) will do away with it its 3-class board structure, effective as of its 2016 annual meeting. (8-K filing)
- Starting next year, all directors will annually stand for election for 1-year terms. News of the change come in a week that saw Pleasant Lake Partners (9.95% stake) call for major changes in an open letter.
Thu, Jul. 9, 11:57 AM
- In an open letter, Pleasant Lake Partners (9.95% stake, capped by a poison pill) declares MagnaChip's (NYSE:MX) board "needs to redouble its efforts and be proactive in unlocking and enhancing shareholder value."
- In accompanying slides, Pleasant Lake estimates the Korean analog/mixed-signal chipmaker can deliver annual EPS of ~$1.75 and free cash flow/share of ~$1.85. The firm thinks MagnaChip's accounting restatement, "misguided strategy," and "poor execution on customer acquisition" have kept it from realizing its potential.
- It also argues MagnaChip's IP could be separated from its chip design business, and that peer valuations and second-hand equipment costs imply a value of $23-$37/share for the company's fabs. In addition, Pleasant Lake highlights recent chip acquisitions by Chinese investors, implyingMagnaChip could also draw M&A interest.
Fri, May 29, 1:49 PM
- Beaten-down MagnaChip (NYSE:MX) has blasted off after posting Q1 results, announcing a restructuring, and removing the "interim" labels from its CEO and CFO's job titles.
- Topeka Capital has upgraded to Buy, and set a $9 target. The firm thinks MagnaChip's foundry ops stand to benefit from greater management focus, and are "valued at a substantial discount."
- Along with its results, MagnaChip has disclosed (through its 2014 10-K) it received an SEC subpoena in Marchrelated to a probe of the company's past accounting. General counsel Theodore Kim has been named the company's chief compliance officer.
Fri, May 29, 12:46 PM
Thu, May 28, 4:55 PM
- After holding the positions for the last year on an interim basis, YJ Kim has been named MagnaChip's (NYSE:MX) permanent CEO and Jonathan Kim its permanent CFO, the company discloses in its Q1 report.
- Also disclosed: HK Kim, GM of MagnaChip's Power Solutions (power management chip) business, and Brent Rowe, the company's sales chief, have resigned. The departures follow the recent resignation of COO Tae Young Hwang.
- YJ Kim: "We continue to face major challenges as a result of strategic missteps in the past, so we have implemented a comprehensive cost and portfolio optimization program to position MagnaChip for growth over the long-term while we also work to improve fab utilization and boost engineering efficiencies." As part of the effort, MagnaChip has combined its Power Solutions and Display Solutions (display IC) ops into a single Standard Products unit.
- Shares have risen to $6.62 AH.
- Q1 results, PR
Thu, May 28, 4:25 PM
Thu, May 14, 2:23 PM
- optionMONSTER reports strong call-buying activity for both Chinese online video leader Youku (YOKU +16.8%) and Korean analog/mixed-signal chipmaker MagnaChip (MX +7.2%).
- More than 3,400 Youku calls expiring May 22 and sporting a $21 strike price have been bought, as have 2,800 calls expiring tomorrow and sporting a $20.50 strike price. The calls were all out of the money going into today. About 3,500 MagnaChip September calls sporting a $7.50 strike price (still out of the money) were bought yesterday at prices ranging from $0.65-$0.75.
- Youku, quite volatile this year, is now up 92% from a March 31 low of $11.85. MagnaChip, though still down sharply YTD thanks to a February crash that followed the end of its accounting review, is now up 29% from a May 5 close of $5.08.
Tue, May 12, 3:12 PM
- Today's notable tech gainers include insurance software/data exchange provider Ebix (EBIX +5%), Chinese polysilicon maker Daqo (DQ +6.9%), networking SRAM maker MoSys (MOSY +7.7%), enterprise mobility management software firm MobileIron (MOBL +6.3%), U.S. solar installer Solar3D (SLTD +4.3%), and Korean analog/mixed-signal chipmaker MagnaChip (MX +5.3%).
- Notable decliners include Chinese online retailers JD.com (JD -4.4%) and Vipshop (VIPS -5%), Chinese Internet mini-conglomerate Qihoo (QIHU -4.6%), and cloud online learning software provider 2U (TWOU -5.6%). The Nasdaq is down 0.2%.
- Daqo is now up 11% since last Friday's mixed Q1 report. Ebix is up 18% since delivering a Q1 beat last Friday. MobileIron's gains come after the company named well-traveled tech vet Simon Biddiscombe its interim CFO. Solar3D is rallying after issuing a PR that sings the praises a of an upbeat Bernstein report on solar cost declines.
- Qihoo and JD are more than reversing the Monday gains seen amid a Chinese Internet stock rally. 2U has now fully given back the gains seen last week following its Q1 beat.
- Previously covered: Rackspace, Everyday Health, magicJack, WidePoint, LivePerson, YY, STMicroelectronics, ChipMOS, iDreamSky, Leidos, Photronics
Tue, May 5, 1:20 AM
- Tae Young Hwang, MagnaChip's (NYSE:MX) president/COO since 2009, has resigned.
- Young-Joon Kim, who has been serving as interim CEO since May 2014, will "assume Mr. Hwang's duties as the Company's principal operating officer." In addition, manufacturing operations SVP Seung-Hoon Lee will now oversee MagnaChip's semiconductor services ops on a day-to-day basis.
- The moves come in a year that has seen MagnaChip's shares crater following the end of its accounting restatement and the posting of its Q1-Q3 2014 results.
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