13 Comments
Mar 4, 2021Liked by Doug O'Laughlin

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!

Expand full comment
author

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

Expand full comment

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

Expand full comment
Mar 4, 2021Liked by Doug O'Laughlin

*How big

Expand full comment
author

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.

Expand full comment

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.

Expand full comment

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

Ty

Expand full comment
author

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.

Expand full comment

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.

Expand full comment
author

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.

Expand full comment

Is this a story you are following: https://m.pulsenews.co.kr/view.php?sc=30800020&year=2021&no=205435

Expand full comment
author

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.

Expand full comment