Market's view on Xp Power
Published on April 2024
- Stock watchers question the current success of semiconductor equipment makers, noting a contrast between general industry growth and the specific struggles of XP, indicating possible market share loss.
- Concerns are raised about XP’s management practices, especially regarding their handling of incentive share awards and the alignment of target prices with past placing prices.
- Management’s decision-making and competence are heavily criticised with specific reference to recent trading updates and the perceived mismanagement since the leadership change from Duncan Penny.
- The execution of nil paid options to executives and the perceived indifference to shareholder interests are highlighted as points of contention.
- Some watchers have decided to sell their stakes due to dissatisfaction with management updates, despite generally liking the company.
- There is a mention of a potential recovery in the semiconductor capital sector, with differing opinions on the timing and impact of this recovery on XP.
- A watcher expresses disappointment in XP’s forecasting abilities, noting discrepancies when compared to other companies in the sector that are experiencing stable or increasing demand.
- The company’s handling of legal issues, such as a court case appeal regarding a fine, is also discussed as a potential influence on stock price movements in the near future.