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Does anyone want to comment on the small players like RMBS,PLAQ,TSEM,TTMI??
Intel is supposed to buy TSEM early next year .
What about Intel?
RMBS - Rambus - they are an IP licensing company. I know their VP of Licensing and VP of Patents - smart guys. As with all IP licensing companies, it is all about their R&D staying one step ahead of the competition, and enforcing patent protection. They don't actually make anything to sell. I'm not a fan of this business as an investment opportunity.
TSEM - Tower Semiconductor - they are an analog foundry (manufacturing company for hire). I don't follow the analog business, but in general analog chips don't command as high a profit margin.
TTMI is a circuit board manufacturer. I don't like the circuit board business. Lower gross margin and almost a commodity business.
Intel is a great company with tremendous bench strength. They measure process technology differently than does TSMC, so on paper it appears TSMC is farther ahead but in reality it is closer than the paper specs might indicate. INTC's primary problem is their Board of Directors, IMHO, and specifically their one-time Chairman of the Board Andy Bryant, Intel's former CFO. They never should have chosen Paul Otellini - a sales & finance guy - to be CEO after Craig Barrett. They never should have chosen the "team" of Brian Krzanich and Renee James to succeed Otellini; BK was a semiconductor manufacturing guy, but Renee James was clearly a mistake. BK forced out James, and then the Board forced BK out ostensibly due to an affair with an employee, and chose Bob Swan - the CFO and a massive mistake - and now finally they have Pat Gelsinger, who at least knows how to spell "CPU." The problem is along the way some of their key chemists retired, and their manufacturing issues appear to be chemistry related.
Most people expect Intel to get their sh*t together sooner or later.
Location: West Los Angeles and Rancho Palos Verdes
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Originally Posted by artillery77
I have a small amount of X. Looks like I picked it up in May. I'm off 5.55%. The one taken from this board for metals was CMC which has done just outstanding for me. I sold at some point and rebought in. I've also got VALE and AA as well. I never know when metals are going to pop. It doesn't seem logical. As long as they pay me a dividend while I wait, I'm happy.
I was once interested in VALE, but at the time, although very generous, their dividend was payed out yearly, so I passed. It's still not clear to me why they don't pay out quarterly.
I was once interested in VALE, but at the time, although very generous, their dividend was payed out yearly, so I passed. It's still not clear to me why they don't pay out quarterly.
I don't know the custom in Brazil - perhaps annual dividend payout is the norm there. One thing I note - institutional investors comprise merely 19.39% of ownership. To me, that's quite unusual - a large industrial company such as VALE, if it were an American company, might show well over 80 or even 90% of shares owned by institutional investors. I'm not sure what to make of that, but it sticks out.
I was once interested in VALE, but at the time, although very generous, their dividend was payed out yearly, so I passed. It's still not clear to me why they don't pay out quarterly.
It is much more common overseas for dividends to be annual and to be tied more closely to earnings. Because they are tied to earnings, they will wait for the audited financial statements prior to making a declaration. In South America, it is very common that the banks will go so far as to payout 60 or 70 percent of earnings and only leave the remaining 30-40% as capital expansion for a company.
It can cause for some interesting affairs. SIEGY will soon be paying out its annual dividend. It has guided shareholders as to where it believes it will end up and currently it is in the 4.25 Euro range. While that may be a middle of the pack yield annualized....it's not bad if you hold for just the remaining month and a half to get the next one. Sometimes that produces movement. BCH (Banco de Chile) tends to have an oversized movement in its swing. The stock will plummet after paying out far beyond what it has paid and then slowly come back over the course of the year. ITUB has both. It has a monthly....tiny dividend (a relic from Brasil's hyperinflation days) it has a set annual dividend and then it has a special dividend (sometimes).
There's even a couple that, in their quest to get quality shareholders, pay different dividend rates depending on how long shares have been held.
The US really has the biggest....divorce from reality between a dividend paid and financial performance of a company. There's plenty of reasons not to hold VALE, or to not want dividends....but I wouldn't let an annual vs quarterly dividend dissuade your decision on what to buy.
I don't know the custom in Brazil - perhaps annual dividend payout is the norm there. One thing I note - institutional investors comprise merely 19.39% of ownership. To me, that's quite unusual - a large industrial company such as VALE, if it were an American company, might show well over 80 or even 90% of shares owned by institutional investors. I'm not sure what to make of that, but it sticks out.
VALE is far from a risk free company. Its balance sheet has deteriorated for years even as it has had some almost unbelievable P&L results. It's largely on the commodity side of things, so once supply/demand even out, it's hard to see them staying anywhere near where they are operating at the moment.
But then again...that's what's great about dividends tied to operations....you actually get some of the ups even if they don't repeat.
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