The micro-network news, although the transaction failed with Qualcomm's abandonment of the acquisition of NXP, but this does not mean that NXP's future prospects are bleak.
CNBC's Jim Cramer said on Monday that although Qualcomm has just completed its two-year plan to acquire NXP, this does not mean that NXP has lost all hope.
The nickname 'Mad Money' has repeatedly stressed that 'last week is definitely a good opportunity for those who want to buy NXP shares. In many ways, even if Qualcomm does not have a successful acquisition, NXP is still very good. Attraction. '
Jim Cramer gave his own evidence for this statement. He pointed out that although the financial report released by NXP the next day was not very bright after Qualcomm announced the cessation of acquisition, Wall Street's view of NXP is changing invisibly.
NXP's stock has been hit by the impact of the second quarter results, but then five different analysts have raised their views on NXP's future stocks, stopping the decline. Even NXP CEO Richard Clemmer It was incredibly optimistic when interviewed by CNBC on Friday.
'Although NXP's financial report is not very eye-catching, the core business's capabilities are constantly strengthening.' Richard Clemmer said in an interview with CNBC David Faber, 'This also highlights the importance of NXP in the two key markets of the car and the Internet of Things. . '
Richard Clemmer also predicts that on this basis, NXP's compound growth rate will reach 5% to 7% in the next three years. It is 50% higher than the average market growth rate.
In terms of stocks, Richard Clemmer also said that NXP will start a 15% stock repurchase program. JPMorgan's report shows that if it is implemented quickly, it will significantly increase NXP's profitability.
'I think there is a very convincing argument.' Jim Cramer reminds us, don't forget that although the current stock of NXP is $95, the price of Qualcomm's acquisition is $127.5 per share. In other words, in Qualcomm's view, NXP The actual value is $32 higher than the current price.
In addition, the termination of Qualcomm's acquisition has benefited NXP in another respect.
Because Qualcomm said it wanted to acquire NXP, NXP lost Apple's key customer, which also caused NXP's 'strategic' mobile business to suffer some losses. Because Apple 'does not want to deal with Qualcomm's subsidiaries'.
'From a long-term perspective, NXP is able to regain this business.' Jim Cramer said.
In short, in fact, Qualcomm abandoned the acquisition, and for most of NXP's business, the impact is positive.
Although Bob Lang, the founder of ExplosiveOptions.net, one of Jim Cramer's top technicians, warned that if NXP's stock falls below $90, it will have a huge impact on the company's future growth.
However, 'Since Qualcomm’s acquisition of NXP has ended, we should pay more attention to the future of NXP compared to this transaction. ' Jim Cramer stressed.
NXP: Changing the two years of lost market space in China is an important task at the moment.
Gu Wenjun, a research analyst at Keysight, said that despite the $2 billion in compensation, the biggest loss for NXP is 'lost two years': affecting potential business opportunities, strategic stagnation, significant business and product lines Changes; short-term shareholders and key management are slightly disappointed. But the overall impact on a good company like NXP is small. In the long run, when uncertainty becomes deterministic, NXP may be more likely to become 'unfavorable' For 'positive'.
First of all, for NXP's customers, especially Chinese customers, it has increased certainty and reduced variables. Don't worry about the change of suppliers, not to worry about the transformation of NXP's business model. NXP in the Internet of Things, artificial intelligence and cars The great advantages in the electronics field and the long-standing relationship with Chinese customers are a big plus for the Chinese industry. Secondly, the future of China's automotive electronics market is growing rapidly, and the Internet of Things market is booming, so NXP also With the close cooperation with the Chinese industry, it will rely on its huge advantages in automotive electronics, security and industrial applications. It will further expand its relationship with China. It is an important task for NXP to change the market space in China. Once again, NXP has sufficient cash flow (NXP's profit of 2.3 billion US dollars in 2017, book cash of 3 billion US dollars), and then Qualcomm's 2 billion US dollars in compensation, in the future NXP has the ability to make greater investment and mergers and acquisitions. Adequate cash Flowing for NXP to increase investment in China and deepen cooperation with China, providing better conditions.