SiTime makes the digital world go round
Updated
If you have ever done an electronics project, you probably either built your own large timing circuit or utilized a quartz-based crystal oscillator in a square silver package with four legs. An oscillator is used in some form in most every electronic device you use.
Think of the computer in front of you. It likely has a dozen or more oscillators integrated into the core processor, memory, wireless radio, LCD screen, trackpad or mouse, and all the components that coordinate between these parts. Each needs an accurate way to generate frequencies and measure time.
Beyond the computer are devices as simple as a stylus for a tablet computer, the tiny wireless earbuds for music, a smart watch and programmable lightbulbs. And there are devices as complicated as new all-electric autonomous-driving cars, airplanes, satellites and rockets. All of these devices are requiring smaller and smaller components.
And that's the whole game with the semiconductor industry. Smaller. Faster. Cheaper. And with timing solutions it's also about More Accurate. Timing solutions are tricky, because they have always been very sensitive to vibration, temperature, and other jitters that cause inaccuracy. Quartz has been able to handle most of these applications up to a point, but its running into several limitations:
1) Quartz is sensitive to extreme temperature and vibration
2) It requires a ceramic container that increases its size
3) They are built for a specific purpose and lack programmability for new uses
MEMS Timing Solutions
That's where MEMS timing solutions come into play. MEMS stands for MicroElectroMechanical System. A MEMS solution is anything that combines mechanical moving parts with electronic signals in a very small device. MEMS circuits that you see every day include displays, tiny microphones (in your phone), accelerometers.
MEMS timing solutions have been in research and development since the 1960s, but the first commercialized product was sold by SiTime in 2006. Since then, SiTime has been 'chip'ping away at quartz oscillator solutions to gain market share. But recently, there has been increasing demand for MEMS solutions. Here's just a few:
1) Smaller and smaller devices
2) Devices used at extreme temperatures
3) Industrial devices that endure high vibration
4) High frequency radios required for 5G
5) Low latency for things like natural stylus writing
SiTime
1) First Commercialized MEMS Oscillator in 2006
2) Competitive strengths in Performance, Size, Low Power, Programmable, Quality/Reliability, Rapid TTM
3) Market Cap: $1.9 billion
4) Shares in Float: 5.4m (of 16.9m)
5) 143 Employees at end of 2019
6) 59 patents for MEMS manufacturing and design
7) EPS last three quarters: -0.14, -0.14, +0.23
8) YoY Sales last three quarters: 47%, 36%, 29%
Technical
1) Up 590% since IPO in November, 2019
2) 5.5% down from all-time high on December 17
3) Deep cup and handle formation from early November
ATR Buy Point
Buy Point: 114.56 (last daily high + 10)
Stop Loss: 97.58 (14.82% based on 10d ATR x2.7)
Position Size: R6.75
Think of the computer in front of you. It likely has a dozen or more oscillators integrated into the core processor, memory, wireless radio, LCD screen, trackpad or mouse, and all the components that coordinate between these parts. Each needs an accurate way to generate frequencies and measure time.
Beyond the computer are devices as simple as a stylus for a tablet computer, the tiny wireless earbuds for music, a smart watch and programmable lightbulbs. And there are devices as complicated as new all-electric autonomous-driving cars, airplanes, satellites and rockets. All of these devices are requiring smaller and smaller components.
And that's the whole game with the semiconductor industry. Smaller. Faster. Cheaper. And with timing solutions it's also about More Accurate. Timing solutions are tricky, because they have always been very sensitive to vibration, temperature, and other jitters that cause inaccuracy. Quartz has been able to handle most of these applications up to a point, but its running into several limitations:
1) Quartz is sensitive to extreme temperature and vibration
2) It requires a ceramic container that increases its size
3) They are built for a specific purpose and lack programmability for new uses
MEMS Timing Solutions
That's where MEMS timing solutions come into play. MEMS stands for MicroElectroMechanical System. A MEMS solution is anything that combines mechanical moving parts with electronic signals in a very small device. MEMS circuits that you see every day include displays, tiny microphones (in your phone), accelerometers.
MEMS timing solutions have been in research and development since the 1960s, but the first commercialized product was sold by SiTime in 2006. Since then, SiTime has been 'chip'ping away at quartz oscillator solutions to gain market share. But recently, there has been increasing demand for MEMS solutions. Here's just a few:
1) Smaller and smaller devices
2) Devices used at extreme temperatures
3) Industrial devices that endure high vibration
4) High frequency radios required for 5G
5) Low latency for things like natural stylus writing
SiTime
1) First Commercialized MEMS Oscillator in 2006
2) Competitive strengths in Performance, Size, Low Power, Programmable, Quality/Reliability, Rapid TTM
3) Market Cap: $1.9 billion
4) Shares in Float: 5.4m (of 16.9m)
5) 143 Employees at end of 2019
6) 59 patents for MEMS manufacturing and design
7) EPS last three quarters: -0.14, -0.14, +0.23
8) YoY Sales last three quarters: 47%, 36%, 29%
Technical
1) Up 590% since IPO in November, 2019
2) 5.5% down from all-time high on December 17
3) Deep cup and handle formation from early November
ATR Buy Point
Buy Point: 114.56 (last daily high + 10)
Stop Loss: 97.58 (14.82% based on 10d ATR x2.7)
Position Size: R6.75
Note
The 14.82% is a little high for me. I’m waiting to see what happens with this one before I enter. Hopefully the volatility comes down and stop adjusts to within 10%.
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