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many new agreements, few opportunities +1
Integrated Device Technology has announced
a partnership with Thetasys to expand sensor design services. The
collaboration should be particularly effective for motion and
safety parts in the automotive and robotics industries. Work like
this typically takes at least a couple of years to bear fruit, but
I think we can have fairly high confidence that it will. In the
meantime, I continue to see IDTI as at least fairly priced.
CUI Global's agreement with the Keele University, in the U.K., seems likely to be longer term, but it could give the company the inside track on further evolution of natural gas systems. I think CUI is somewhat underpriced, but still GRoDT, of course.
I've also been getting periodic questions about OLED, which announced
an agreement with Visionox a week ago, which typically omits any
shred of detail. As forecast, I haven't written about it or other
developments because my outlook has not changed. Just because
OLED has stopped dropping doesn't mean it's time to buy, though
media machine is starting to try to steer the market that way. It
wouldn't surprise me at all if those attempts are successful, but
I still see fair value in the $80 range and don't really care what
the stock does. The long term risks are as stronger than ever,
between trade troubles and Kyulux
and Kateeva advancing their own partnerships. UDC has been played
by its customers before, to investor dismay, and it is quite
possible that could happen again. Consequently, I still do not
intend to cover each of the many developments in this space in
detail unless I see something that changes my outlook.
Similarly, I Schlumberger's business is showing signs of life, but its stock is not. This could be an opportunity, but I am less willing than ever to take hydrocarbon-related risks. In addition to the supply/demand games being played, my discussion with refinery managers indicates that there is risk from derivative chemical production, like ethylene cracking.
Finally, RESN is up on an open market share purchase
from Park City Capital. Resonant should announce hitting 25M
parts in circulation in the coming months, but I do not regard PCC
as a true insider and am not inclined to chase RESN, favoring
value stocks like VOD and CTL instead, for the time being.