Doing it our way now: the approach this company pioneered is becoming the market's way
The model's full reasoning — Q2 2017 call → NOWe need to determine if management describes that their way of doing things is being adopted, copied, or moved toward by others in the market, and that this convergence validates their position. Key points from transcript: - Peter Kirlin discusses the JV with DNP in China, extending their Taiwan partnership. He says: "This is a great agreement build upon a very successful relationship in Taiwan and one which I fully believe will benefit our customers, employees and shareholders." He mentions that JVs like this are extremely rare, and that they have been successful. He says: "Looking back, we believe that Taiwan JV has been successful by any measure you choose." He also says: "PDMC has become a recognize leader in the Taiwan photomask industry." But does he describe others adopting their way? He talks about the JV as a way to better serve customers and prevent captives. He says: "our biggest challenge is to ensure that no more captives spring up, and by partnering with DNP we bring what looks very much to the China semiconductor industry as not a supplier, but a company capable of being their partner." That's about their own strategy, not others copying them. - He mentions that they are "recognized as being the preeminent partner to do development with in memory" and DNP in logic. That's a claim of leadership, not that others are following. - On FPD, he talks about market trends, but not about others adopting their approach. - On high-end IC, he mentions that they have "initiated calls in 10 and 7 already, which is a little sooner than we had thought" and that there is "renewed interest" in 22nm. That's about their own activities, not others copying. - There is no mention of competitors or new entrants modeling themselves on Photronics, or industry standards converging on their design, or customers telling them others are trying to replicate what they do. - The only possible hint is that they are forming a JV with DNP, which is a competitor, but that's a partnership, not others adopting their way. They are combining forces, not that others are following their lead. - Management does not describe any phenomenon where others are now following their lead. They talk about their own success and leadership, but not about imitation. Thus, answer is NO.
| Ticker | Company | Call | Date | Call grade |
|---|---|---|---|---|
| AES | The AES Corporation | Q1 2024 | 2024-05-03 | C+ |
| GGR | Gogoro Inc. | Q1 2023 | 2023-05-11 | D |
| TGT | Target Corporation | Q4 2022 | 2023-02-28 | C |
| ORAN | Orange SA | Q2 2018 | 2018-07-26 | B |
| USFD | US Foods Holding Corp. | Q1 2018 | 2018-05-12 | C |
| SHOO | Steven Madden, Ltd. | Q1 2017 | 2017-04-21 | C |
AES · Q1 2024 → YESThe question is: Does management describe that the WAY THIS COMPANY DOES THINGS is NOW BEING ADOPTED, COPIED, OR MOVED TOWARD BY OTHERS IN ITS MARKET, so that the company's own way of doing things is ...
GGR · Q1 2023 → YESThe question is: Does management describe that the way this company does things is now being adopted, copied, or moved toward by others in its market?
TGT · Q4 2022 → YESThe question is: Does management describe that the way this company does things is now being adopted, copied, or moved toward by others in its market?