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Max Tynan's avatar

Thoughts on ASML at these levels? Know you've mentioned that ASML gets/has been expensive in the $600 range - Still expensive here in the $500's? Also, We'll miss the posts, but wish you luck on the journey!

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Doug O'Laughlin's avatar

My must buy price is ~30x earnings - which is a bit lower than this. That would put it in the ~350s in EUR!

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Max Tynan's avatar

Dope, thank you although I wonder if we’ll see that... What a business they’ve got

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SMS's avatar

*How big

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Doug O'Laughlin's avatar

This is one of the things that everyone is thinking about quite a bit. This seems secular but an overbuild is totally possible. I don't think it is a real concern for now - but I 100% think you should watch out for it. In my parting post I'll give you some stop signs on what to look for imo.

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Nils Elwing's avatar

Mule, why do the OSAT companies trade at such low multiples? 6239, 8150, AMKR, 2449 all trade at incredibly low FW multiples and solid dividend yields.

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Brian LeFevre's avatar

What's your thoughts on starting a position on TSM given the environment..

Ty

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Doug O'Laughlin's avatar

Very favorable. It trades at a decent forward multiple now and its pretty much a monopoly-ish business. I kind of love it. It's hard to get really excited at 30x given what I think it's growth profile is but now its much easier to underwrite. 25x or a 4% cash yield + 15% FCF CAGR is a nice return imo.

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RR's avatar

Would love your input on AI Semi Tenstorrent (where Jim Keller landed) as a specialized AI chip who should they be looking to manufacture with? The Semi-startup space in general has been interesting.

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Doug O'Laughlin's avatar

I don't have any really great thoughts other than the podcast. I really want to stress that they are among the 100s of semiconductor startups focused on doing this. Jim Keller is great - but just because he's there doesn't mean they "instantly win".

It's complicated and I'm waiting for actual product to have a stronger take.

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Doug O'Laughlin's avatar

I mentioned it very briefly at the end. It’s the right asset that is in demand today, I think it’ll get sold. That being said no other view really.

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