The 25-day quiet period on Smart Global Holdings Inc. (SGH) will end on June 19, allowing the firm’s IPO underwriters to publish detailed positive reports and recommendations on the firm for the first time since it went public in late May.

After June 19, we believe SGH’s IPO underwriters will issue Buy ratings and favorable research, given the stock’s good early market performance, along with other critical factors.

 

Our firm’s research has shown above market returns in a short window of time (-5,+2) days around the event (Day 0). This occurs only for only a handful of firms, such as SGH, with strong syndicates, IPOs, and often exposure to tech.

We view the event as a particular buying opportunity for event-driven investors. At the same time, SGH presents fundamental strength and is well positioned relative to its peers.

Business Overview: Manufacturer and Provider of Memory Solutions Worldwide

Smart Global Holdings designs, manufactures, and sells specialty memory solutions. Its product portfolio includes DRAM (dynamic random access memory) modules for servers, laptops, and desktops. In addition, the company manufactures DRAM integrated circuits for smart TVs, mobile DRAM and flash products for mobile devices, embedded and removable NAND flash products, and other specialty DRAM modules.

SGH also offers supply chain services such as logistics, procurement, temporary warehousing, inventory management, packaging services, kitting, and programming. The company sells its products primarily to original equipment manufacturers through its direct sales force and through independent sales professionals in North America, Europe, Asia, and Latin America. Smart Global Holdings was founded in 1988 as Smart Modular. It changed its name in 2014 and is headquartered in Newark, California.

Leading Market Position & Impressive Customer Base

Smart Global Holdings holds the leading market position by market share in Brazil as a manufacturer of memory for computers and mobile devices. SGH also holds a leading market position worldwide by revenue in specialty memory solutions, especially solutions that meet customer-specific requirement.

Print Friendly, PDF & Email

Related Posts