He’s back! Tapping his watch, wondering if it works because the second hand doesn’t seem to be moving. He is ready to foist the same death and destruction that never occurred over the past 18mos.
This time it is Samsung, and it is cutting capex by one bu-bu-bu-billion dollars in Q3 alone! Gasp! And LRCX goes on to Citi’s Top Picks Live! as a short.
We won’t talk valuation and we won’t talk estimates, because neither support a genuine short case other than for about 30secs. The only thing to consider is how often he has been wrong the past year and a half.
And he damn well better be right this time or his spot in the semicap heap is done. He’s gotta know that, too, as so many of his other calls have fallen flat on their ass and his credibility crumbles a piece at a time. Heck, he even tried starting another catfight with Citi’s semi analyst over the idea, but like investors ought to do with this particular call, Yeung brushed off the challenge with a “scamper off, little boy, and take off that stupid vest.”
Given the recent credibility lapse on his part, I am guessing he really does have something this time. Just remember, all semicap moves together because all their tools are required to make a production line -> if LRCX feels the bite, they all feel the bite. We’ll see if the stocks actually go down as a result.
