O2Micro International: The Status Quo Continues

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MarketGyrations
2.67K Followers

Summary

  • OIIM has gotten rocked by several hits in the last six months, including downbeat guidance, but the stock has managed to shrug it off.
  • The outlook sees earnings go down in the near term due to an inventory problem, but the problem is not expected to last into the new year.
  • Multiples are not as nice as before due to revised earnings expectations, but they are still very fair for a company with a healthy balance sheet.
  • Long OIIM is worth it in light of current valuations and an expected recovery in 2023, regardless of whether the proposed buyout succeeds or not.

Battery supply concept

MF3d

O2Micro International (NASDAQ:OIIM) has not done much in recent months. The most recent quarterly report caused a small drop in the stock, but the response was relatively underwhelming in light of what the latest guidance called for. It's been mostly

OIIM chart

Source: finviz.com

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MarketGyrations profile picture
2.67K Followers
Welcome to my author's site. As an avid follower of SeekingAlpha, I take great interest in articles posted as the subject matter is often something that appeals to me. However, I will sometimes encounter an article that I might not agree with. My purpose is to present an alternative view to readers that they may want to take into account. I hope you find my articles interesting and informative.

Disclosure: I/we have a beneficial long position in the shares of OIIM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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