GlobalFoundries Announces IPO

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Their prospect says they have 500M shares. Selling 55k of them for $42-47 would mean the perceived value of of $21-23.5B. The geographical risk is kinda low, as they have plants in EU and US, but US may help US-only companies. They report that since 2018 they're on constant loss, but in 2021 it was the lowest. And they paid dividend in 2021. The research expenses were going down, which can be understood as they sold ASIC part and fired 7nm people. The demand is skyrocketing, but China and US may "suggest" their respectable manufacturers. Intel, TSMC, and Samsung are getting stronger too. I'd love to invest in chip making, but this doesn't look like a safe profits source. On the other hand "good profit & low risk" investment offers are basically Ponzi schemes (unless you're a billionaire too rich to fail). Can someone relate to this? It would be interesting for me to invest a tiny bit (can't do much more, as I don't count as bourgeoisie 😀) just for the sake of it, but if there's virtually no chance for compensation, it wouldn't be fun at all.
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Ven0m:

Their prospect says they have 500M shares. Selling 55k of them for $42-47 would mean the perceived value of of $21-23.5B. The geographical risk is kinda low, as they have plants in EU and US, but US may help US-only companies. They report that since 2018 they're on constant loss, but in 2021 it was the lowest. And they paid dividend in 2021. The research expenses were going down, which can be understood as they sold ASIC part and fired 7nm people. The demand is skyrocketing, but China and US may "suggest" their respectable manufacturers. Intel, TSMC, and Samsung are getting stronger too. I'd love to invest in chip making, but this doesn't look like a safe profits source. On the other hand "good profit & low risk" investment offers are basically Ponzi schemes (unless you're a billionaire too rich to fail). Can someone relate to this? It would be interesting for me to invest a tiny bit (can't do much more, as I don't count as bourgeoisie 😀) just for the sake of it, but if there's virtually no chance for compensation, it wouldn't be fun at all.
well considering the current geo-political situation , Its relatively high risk , most of their fabs are in Singapore, if things turn sour in the asia-pacific region, going to be bad day for glofo, but maybe not as bad as everybody else so idk hard to say, definitely not something to put all of your chips in.
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Ven0m:

Their prospect says they have 500M shares. Selling 55k of them for $42-47 would mean the perceived value of of $21-23.5B. The geographical risk is kinda low, as they have plants in EU and US, but US may help US-only companies. They report that since 2018 they're on constant loss, but in 2021 it was the lowest. And they paid dividend in 2021. The research expenses were going down, which can be understood as they sold ASIC part and fired 7nm people. The demand is skyrocketing, but China and US may "suggest" their respectable manufacturers. Intel, TSMC, and Samsung are getting stronger too. I'd love to invest in chip making, but this doesn't look like a safe profits source. On the other hand "good profit & low risk" investment offers are basically Ponzi schemes (unless you're a billionaire too rich to fail). Can someone relate to this? It would be interesting for me to invest a tiny bit (can't do much more, as I don't count as bourgeoisie 😀) just for the sake of it, but if there's virtually no chance for compensation, it wouldn't be fun at all.
This seems like a high price for what feels like an IPO to save the company. Nope.
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btw, correction.. its not 55k but 55 million. That is 10-12% of the total (if 500M is correct). Everyone knows that they have 12nm process which is matured enough, and 10nm should be pretty achievable as well. With the ongoing global supply shortage and high demand .. they have plenty of orders at least for next 2-3 years. It seems they are now focusing on 5G, IoT, and other non-processor manufacturing. This money they are raising, should help them cover some losses, and build a foundary or two..on next 7nm or 5nm... if all goes well. Not a bad hand if you ask me.
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Considering the global market for chip manufacturing isn't ever going to go away, it seems like a decent idea. Can GF stay relevant to current customer needs and be profitable though? I'm very tempted to invest a few thousand dollars but...