GEM Investment Club – SOITEC SA Analysis

The investment club of GEM Finance Society has the pleasure to present an example of the work made by the members. To conduct their investment sessions, the analysts of the GEMIC (GEM Investment Club) produce the same model of presentation. The GEMIC manages a $10 000 portfolio invested on the US and French markets. The 30 members meet every Thursday in the market room to present and take investment decisions. The main focus of the club is to provide students with a strong corporate and market finance training.

The GEMIC is proud to share with you the analysis of the Soitec company. This recommendation was valid on the 13th of February 2020 but the economic environment has radically changed after this date. The GEMIC recommended at this time to buy since the “black swan” of the pandemic was impossible to anticipate. We thought Soitec was a great undervalued opportunity considering the semiconductor industry had a great development potential. As this presentation has been made orally, the comments are not fully detailed. Finally maybe the hypotheses of the Discounted Cash Flow valuation are ambitious but it comes from the expected growth in the registration document on a 2-year period.

Ulysse Sarron & Gregory Benhamou

Heads of the GEM Investment Club

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