This article is excerpted from a letter by MOI Global instructor Jim Roumell, portfolio manager of Roumell Asset Management, based in Chevy Chase, Maryland.
Tower Semiconductor and its subsidiaries operate collectively under the brand name TowerJazz, a global specialty foundry leader. TowerJazz manufactures next-generation analog integrated circuits in growing markets such as consumer, industrial, automotive, medical, and aerospace and defense. To provide multi-fab sourcing and extended capacity, TowerJazz operates two manufacturing facilities in Israel, two in the U.S., and three in Japan.
One year ago, TSEM was trading at $36 per share. Due to industry-wide challenges with inventory, declining revenue and profit margins, and weakness in the Apple supply chain, as well as a company-specific issue of an expiring supply contract with Panasonic, its joint venture partner, the shares declined over the course of 2018, dropping under $14 per share in December.
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The specific securities identified and described do not represent all of the securities purchased, sold, or recommended for advisory clients, and the reader should not assume that investments in the securities identified and discussed were or will be profitable. The top three securities purchased in the quarter are based on the largest absolute dollar purchases made in the quarter.
About The Author: Jim Roumell
Jim Roumell entered the securities industry in 1986. Before founding the firm in 1998, he was a Registered Principal at Raymond James Financial Services, Inc. Mr. Roumell is a frequent contributor to Manual of Ideas Global and has been featured in such publications as Barron’s, Kiplinger’s, Value Investor Insight, Financial Planning Magazine, and The Washington Post. He is listed and quoted in “The Art of Value Investing: How the World’s Best Investors Beat the Market.” Mr. Roumell was selected to participate in, and won, two consecutive Wall Street Journal stock picking contests in 2001 and 2002. He is a Board Member and Chairman of the Investment Committee of Wayne State University Foundation. He is also a Board Member and serves on the Investment Committee of Amalgamated Casualty Insurance Company. Mr. Roumell is a graduate of Wayne State University in Detroit, Michigan.
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