2Mon·

First purchase

Payout ratio below 35

Gross margin 24 at 56

Medical & technology group that is involved in semiconductors, among other things.

Figures were good, but of course the outlook was lowered due to customs uncertainties.

15.05

Merck

Bought x4 at €117.05

€468.20

8 Comments

Joris@Joris

2Mon

They're involved in semiconductors? Tell me more 😅

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Enrique@Dividenden_Monteur

2Mon

@Joris It's easy to explain: Merck supplies the silicon for ASML's lithography machines, for example.

https://www.merckgroup.com/de/expertise/semiconductors/offering/product-catalog.html?p=1

Here I have picked out the catalog for you to browse through, most of it is just technical jargon 😄 but you get an idea of it

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Joris@Joris

2Mon

@Dividenden_Monteur I didn't even know that. I only thought pharma.
Cool German company, but has suffered quite a bit. Share price was over €200.

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ThemenmitKopf@topicswithhead

2Mon

@Dividenden_Monteur yes, but the problem is that this is not the main focus. In my opinion, it doesn't fit in with the portfolio either. Many others also have this as a by-product, which I'm sure comes from the old chemical industries. They also have one of the best AI chemistry models, but you don't read much about it.

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Enrique@Dividenden_Monteur

2Mon

@Joris The main business is still medicine, and that's where everyone's going down the drain at the moment, see the American "sister".

For me, it is the only pharmaceutical company that I can value.
Therefore a buy for me at this price level

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Enrique@Dividenden_Monteur

2Mon

@topicswithhead German companies are simply not in the business of peddling new developments or advances. LinkedIn is a good indicator for this in my opinion if you look at German and international companies.

And on the subject of by-products: I think that the silicon for an ASML machine has to have a certain purity and cannot simply be a by-product from any manufacturer.

Maybe @RealMichaelScott can say something about this?

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ThemenmitKopf@topicswithhead

2Mon

@Dividenden_Monteur Good question, but many have these semi-chemical electronics divisions. $DD, for example, will soon be spinning them off. I don't think Infineon has the EUV, but it would be interesting to know either way. I would be happy for my shares if they used $AIXA. They are built for this sector.

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Nico Uhlig@RealMichaelScott

2Mon

@Dividenden_Monteur yes, there are not too many manufacturers who can achieve this purity. We are talking about purities where we are talking about the number of foreign atoms and no longer about purity percentages.

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