SGH - SMART Global Holdings Deserves The Benefit Of The Doubt

• Q3 FY2021 revenue and EPS grew by 55.6% and 98.6%, respectively, YoY and the LED acquisition from Cree helped make it possible.
• The stock rallied in response to the latest numbers, but news of a public offering made the stock turn south.
• The stock selloff induced by Silver Lake could be an opportunity to get in, especially with multiples where they are.
• The reaction to the Silver Lake move looks excessive as nothing has fundamentally changed, which is why long SGH is the way to go.

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