$38
My favorite value tech stk remains
Silicon Motion. why?- $38. This stock has been $38 and no higher for the entirety of this thread. In fact going back a year I looked at the stk at $36. Always it seems between $36-$38 in a raging bull market that can be annoying! But SIMO I don't think is a joke stock. Some tech stocks just have weird trading histories where some number arbitrarily rivets itself to the stk and the stock price always seems to return to it. ON semi is like this with $22. Great company, great stock, great product wait long enough it will be $22.
You learn these things over the years.
So SIMO recognized that the market was not going to reward it ever... their niche in tech is just not what the market is looking for but it's stable... and so the company began paying a healthy dividend. Very healthy 3+%.
Silicon Motion: 3.7% yield
Silicon Motion (
NASDAQ:SIMO) is a much smaller business than Broadcom or IBM and its dividend policy is much younger, but the storage controller specialist is showing a serious commitment to cash-based shareholder returns, and its payouts have doubled in four years. This company spent 57% of its trailing free cash flows on dividend checks, leaving plenty of wiggle room for future payout boosts.
Silicon Motion's yield stands at 3.7% today. Low share prices played an important part in these generous yields because the stock has fallen 25% in 2020. We're talking about a leading provider of controller processors for storage systems based on NAND flash memory chips, and that's a difficult place to do business this year.
Consumer demand is weak for devices with lots of NAND memory, such as smartphones and tablet computers. NAND-based enterprise storage devices are heading into the mainstream, softening the blow to some degree, but many investors still worry about permanent damage to Silicon Motion's most important target market.<---
That is the crux of the problem/ opportunity tablets are they done? I think they have lost momentum and reason to exist outside of the medical world... but it is also a ripe area for invention. A tablet that is truly a gamer's tablet or a tablet that just looks really good and maybe is also is a SONO type speaker... Tablets that you install into walls- like the Mirror.... Tablets that you install onto cheap exercise bikes to turn them into mini-Pelatons...
That's just off the top of my head. I wouldn't bury the tablet yet... Smartphones I thought were holding up. everyone has one is that the problem? So A New cycle of phones with Augmented Reality will that jump start that area of the market?
SIMO s trading at just 12 times forward earnings estimates and includes a generous and fully cash-backed dividend policy.
So back to $38... like I was saying with the market ripping higher that $38 is just annoying... After the last few weeks... That $38 looks GOOD!