Short of locusts, just about everything that could have gone wrong for ON Semiconductor (Nasdaq:ONNN) did, in 2011. Not only did the company have to deal with a pair of natural disasters, but the company saw a widespread erosion in the chip market throughout the year. While the chip industry looks to have likely bottomed in the fourth quarter of 2011, ON Semiconductor is going to have a longer road back than most and investors need to understand that today's value-pricing comes at a cost.
Twin Disasters Delay Sanyo Benefits
When ON Semiconductor bought the Sanyo chip business, it was a bold and somewhat risky move to expand the business and vault the company in the top echelon of analog chip companies. Although the promise and potential of the deal is intact, the timing has been blasted by events completely beyond management's control.
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