5 ms·

I don't understand why Softbank won't just put it back to the public market and list on the LSE.

ryebit 6y ago
Good Lord, that's a great idea. They'd be able to sell the shares in no time. Soon as it hits public I'm sure a ton of folks who just invest in everything semiconductor would just jump in. I've been avoiding SoftBank because they've got so many other risky ventures, putting money in company at large seems kinda volatile.
- burgerquizz 6y ago
  I've been checking the semi conductor space. What semi companies aren't overvalued with a decent P/E ratio right now? Was thinking to just take an ETF like SMH[1], but wondering if there were a better choice. TSMC, Applied Materials, ASML, Nvidia, etc... had crazy run and I'm wondering if they can keep growing that much in the next years. [1] https://www.vaneck.com/etf/equity/smh/holdings/ https://www.vaneck.com/etf/equity/smh/holdings/
  - selectodude 6y ago
    Intel is still rather undervalued. PE of 11, huge amounts of cashflow, one big chip win and they're back.
    - mirekrusin 6y ago
      Intel just lost all engines in-flight. They're still flying, yes, but gravity will do its thing.
      - riking 6y ago
        Yeah, Intel needs some major direction changes before I'll be comfortable investing in them.
        jacquesm 6y ago
        The proximity of 'lost all engines in flight' and 'major direction changes' in this thread suggests that even if those major direction changes materialize it may not be good news.
      - mahkeiro 6y ago
        We keep reading this but Intel is not just CPUs... and the CPU are currentky not the best but not that bad either.
        selectodude 6y ago
        Intel is still capacity constrained, no less. I'm not saying they make the best CPUs, my last purchase was an AMD Ryzen, but this idea that their demand will fall of the face of the earth assumes that other fabs have the capacity to pick up the slack which is verifiably untrue. Merely due to their existance they'll have time to turn it around. Disclamer: long intel, a few thousand shares at $47. not enough to need to pump the stock.
    - IshKebab 6y ago
      P/E isn't everything. People know those earnings are going to tank very soon.
    - ineedasername 6y ago
      In this case the markets seem to have priced in a low probability of Intel getting that big win.
- id 6y ago
  >I'm sure a ton of folks who just invest in everything semiconductor would just jump in. I'm sure a ton of folks would just jump in because everyone would be jumping in.
tcldr 6y ago
Absolutely. I really would like to understand why Soft Bank don’t do this. UK gov should do everything it can to encourage.
StringyBob 6y ago
2020 was a long year - this was just 6 months ago: https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/softbank-confirms-plans-for-arm-ipo-or-sale-59863081 https://www.spglobal.com/marketintelligence/en/news-insights...
Havoc 6y ago
You can get better money if you sell a strategic asset as a whole rather than throwing it onto the public market & all the red tape, PR and control dilution that entails
- michaelt 6y ago
  ARM is 100% equipped to deal with red tape and PR; it was public until 2016 when SoftBank brought it.
  - Havoc 6y ago
    Note quite what I meant. In this context being private is a huge advantage. Less filings and less shareholders and less publicity gives you a lot more room to manoeuvre.
- wyuenho 6y ago
  The problem right now is this strategic asset is so strategic for everyone, Softbank can't sell it to any single entity unless there's some guarantee of ARM's continued independence and impartiality.
ksec 6y ago
They will have a hard time to try and convince the public to buy ARM's shares at P/E 100.
twic 6y ago
Even better - direct listing on WallStreetBets.
- stjohnswarts 6y ago
  A potential merger with Game Stop?
ur-whale 6y ago
>I don't understand why Softbank won't just put it back to the public market and list on the LSE. Softbank is a grossly mismanaged shitshow fueled by an endless money well of Saudi money. Don't expect it to be behaving rationally.
- mumblemumble 6y ago
  This actually seems rational to me. They grossly overpaid for ARM, and selling it on the public market may well end up being another huge and embarrassing write-down. On the private market, though, they had a shot at finding a buyer to whom ARM was worth more than its value as an independent company. Of course, given the kind of company that ARM is, any such buyer is going to be, almost by definition, an antitrust situation. So maybe it never could get past regulators. But, from a purely self-interested standpoint, it makes sense for them to try.

Good Lord, that's a great idea. They'd be able to sell the shares in no time. Soon as it hits public I'm sure a ton of folks who just invest in everything semiconductor would just jump in. I've been avoiding SoftBank because they've got so many other risky ventures, putting money in company at large seems kinda volatile.

burgerquizz 6y ago
I've been checking the semi conductor space. What semi companies aren't overvalued with a decent P/E ratio right now? Was thinking to just take an ETF like SMH[1], but wondering if there were a better choice. TSMC, Applied Materials, ASML, Nvidia, etc... had crazy run and I'm wondering if they can keep growing that much in the next years. [1] https://www.vaneck.com/etf/equity/smh/holdings/ https://www.vaneck.com/etf/equity/smh/holdings/
- selectodude 6y ago
  Intel is still rather undervalued. PE of 11, huge amounts of cashflow, one big chip win and they're back.
  - mirekrusin 6y ago
    Intel just lost all engines in-flight. They're still flying, yes, but gravity will do its thing.
    - riking 6y ago
      Yeah, Intel needs some major direction changes before I'll be comfortable investing in them.
      - jacquesm 6y ago
        The proximity of 'lost all engines in flight' and 'major direction changes' in this thread suggests that even if those major direction changes materialize it may not be good news.
    - mahkeiro 6y ago
      We keep reading this but Intel is not just CPUs... and the CPU are currentky not the best but not that bad either.
      - selectodude 6y ago
        Intel is still capacity constrained, no less. I'm not saying they make the best CPUs, my last purchase was an AMD Ryzen, but this idea that their demand will fall of the face of the earth assumes that other fabs have the capacity to pick up the slack which is verifiably untrue. Merely due to their existance they'll have time to turn it around. Disclamer: long intel, a few thousand shares at $47. not enough to need to pump the stock.
  - IshKebab 6y ago
    P/E isn't everything. People know those earnings are going to tank very soon.
  - ineedasername 6y ago
    In this case the markets seem to have priced in a low probability of Intel getting that big win.
id 6y ago
>I'm sure a ton of folks who just invest in everything semiconductor would just jump in. I'm sure a ton of folks would just jump in because everyone would be jumping in.

tcldr 6y ago

Absolutely. I really would like to understand why Soft Bank don’t do this. UK gov should do everything it can to encourage.

StringyBob 6y ago

2020 was a long year - this was just 6 months ago: https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/softbank-confirms-plans-for-arm-ipo-or-sale-59863081 https://www.spglobal.com/marketintelligence/en/news-insights...

Havoc 6y ago

You can get better money if you sell a strategic asset as a whole rather than throwing it onto the public market & all the red tape, PR and control dilution that entails

michaelt 6y ago
ARM is 100% equipped to deal with red tape and PR; it was public until 2016 when SoftBank brought it.
- Havoc 6y ago
  Note quite what I meant. In this context being private is a huge advantage. Less filings and less shareholders and less publicity gives you a lot more room to manoeuvre.
wyuenho 6y ago
The problem right now is this strategic asset is so strategic for everyone, Softbank can't sell it to any single entity unless there's some guarantee of ARM's continued independence and impartiality.

ksec 6y ago

They will have a hard time to try and convince the public to buy ARM's shares at P/E 100.

twic 6y ago

Even better - direct listing on WallStreetBets.

stjohnswarts 6y ago
A potential merger with Game Stop?

ur-whale 6y ago

>I don't understand why Softbank won't just put it back to the public market and list on the LSE. Softbank is a grossly mismanaged shitshow fueled by an endless money well of Saudi money. Don't expect it to be behaving rationally.

mumblemumble 6y ago
This actually seems rational to me. They grossly overpaid for ARM, and selling it on the public market may well end up being another huge and embarrassing write-down. On the private market, though, they had a shot at finding a buyer to whom ARM was worth more than its value as an independent company. Of course, given the kind of company that ARM is, any such buyer is going to be, almost by definition, an antitrust situation. So maybe it never could get past regulators. But, from a purely self-interested standpoint, it makes sense for them to try.