Mordechai Yavneh on Silicon Motion $SIMO
Mordechai Yavneh, founder and PM at Focus Capital, discusses his investment in Silicon Motion (SIMO) and why he thinks it's "merger arb for people who don't like merger arb." Focus Capital's research site (with SIMO deck): https://focuscapitaladvisers.com/research Chapters 0:00 Intro 2:40 Why SIMO is different than normal merger arbitrage 6:00 More SIMO overview 11:25 Is the merger overhang impacting SIMO's price? 15:30 Discussing SIMO's fundamentals 21:30 Why companies are outsourcing to SIMO 25:50 Why SIMO is taking share 31:30 Breaking down SIMO's market share 34:15 Why SIMO's demand dynamics aren't like MU's 40:20 SIMO's proxy projections and fundamentals 45:35 How Mordechai looks at SIMO's fundamental value 52:15 Why MXL wanted to buy SIMO 57:00 Why SIMO saw some customer churn in ~2018 1:00:00 What are the odds the SIMO deal goes through? 1:03:45 Capital allocation in a potential deal break