There’s a quote I’ve long loved, apocryphally quoted to
Dallas Cowboys defense lineman Randy White, that goes “Potential is a
fancy French word that means you ain’t done yet!” That’s
not entirely fair when it comes to ON Semiconductor (ON),
but I don’t think I’m the only investor torn between the possibilities
of what higher-value products like image sensors and SiC MOSFETs could
do for ON and the historical realities of the company’s performance over
the last few years.
Being unable to hit margin
targets is a big deal with semiconductor companies, and particularly
when there isn’t enough revenue out-growth to compensate. I’m likewise
concerned that management is still too optimistic about its near-term
prospects and may have more risk on costs and inventories. Countering
that, the stock has been thumped again and appears to be trading with
more reasonable expectations embedded into the price.
Follow this link to the full article:
ON Semiconductor Is A Tricky Mix Of Opportunity And Disappointment
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