Most Semiconductors have been hit by KLAC comments and Micron analysts’ downgrades (Micron announced that NAND chip prices fell in the third quarter. NAND products currently account for about 37% of Micron’s total net sales. After the announcement, an analyst at Baird cut his price target from $100 to $75, citing concerns about NAND oversupply). While we believe Micron sell-off is exaggerated, we want to initiate a short in one of the European Semi with the lowest grades to hedge our exposure in STM and Micron which is part of our US SC basket.

Short DLG GY for a 16 target

Update on October 12th, while the stock nearly reached our target at 16, it made a swift rebound towards 22.5, where we increased our short