The first consideration I want to make is based on what we are seeing in the market today, very high inflation, low growth and enormous costs for everyone.
The collapses of these American supermarket chains demonstrate the suffering we are experiencing and seeing. It is not easy to get out of this situation and it is not taken for granted that the shares will recover from this situation.
The situation for semiconductor companies, on the other hand, is very positive both for this period and for the future. Everyone needs us and the demand is very high. Applications are popping up like mushrooms and there is more and more data to protect and manage.
Now, it is fair to say that netlist inc is not bringing home high gross and net margins and this is due to the fact that inflation and overheads are totally out of control.
It is fair to say that netlist is focusing on increasing customers and increasing turnover because you need to take advantage of the sk hynix guarantee in order to expand your business and market.
Why am I optimistic about netlists?
Having a real partner with whom you share information, patents and products is a weapon of infinite value for netlist. Today we can see what this agreement is worth, netlist can deliver products quickly when the average chip delivery time is tens of weeks. Let's talk about an incredible difference.
Another point to consider is china. Netlist makes 30/40% of turnover in China and in my opinion it is essential to increase its customers and make more agreements. The United States and China have been competing for some years on technology and need products of the highest quality and value such as netlist products.
Hong's strategic choice may work in the long term.
In short, netlist could grow in more ways, geographic and strategic diversification (we could extend the agreement and request more sk hynix products) and netlist could close all three ongoing cases with a lot of patience
I wanted to conclude by reporting a recent news where the United States could remove or reduce customs duties on Chinese products. Insane? absolutely not. It is one of the very few weapons available to the United States to reduce inflation and this weapon is really important.
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