Archetype-Research Under the radar: 1. Small-caps 2. Datacenter supply chains 3. Undercovered companies
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Davy retweeted
Holy shit- Worldex. The cavalry have arrived.
This is major support for minority shareholders. 2027 AGM could be a game-changer.
November 13 filing reveals that Asset Value Investors (AVI), a London-based investment manager, has crossed the 5% ownership threshold in Worldex Industry & Trading (KOSDAQ: 101160).
Davy retweeted
You want to take advantage of the Korea plunge fellow businessmen?
This is the highest return to risk I see in Korea at the moment.
Its my biggest position.
Worldex trades at EV/EBIT of 3.1. It's closest peer Hana Materials (also cheap imo) trades at EV/EBIT 9.
That's a 3X discrepancy.
They are NOT really exposed to memory prices- they are exposed to memory CAPACITY expansion- which will expand regardless.
They make silicon products which are consumables used in the equipment to make memory.
I have never done so before- but I have just turned on the 1 week free trial for my stack so you guys can get up to date quickly on the company.
Governance has kept the valuation low- but activists won the recent majority vote- and got the company to buyback shares!
The stock is -20% from my pitch and I sleep so easily because I know this company backwards.
There has been activist win after win that have exceeded my bullish assumptions. T
Mr. Market piles this into the same bucket as the memory trade- its anything but that!
Enjoy!
open.substack.com/pub/archet…
Davy retweeted
Just turned on 1 week free trial for the first time ever
so friends can quickly explore what I believe to be the cheapest stock and highest R/R stock on the korean market.
not hiding it- its Worldex- but there's a lot of research you need to do (or just read my research I've done the heavy lifting)
pop a comment and ill get ur free trial to u
You want to take advantage of the Korea plunge fellow businessmen?
This is the highest return to risk I see in Korea at the moment.
Its my biggest position.
Worldex trades at EV/EBIT of 3.1. It's closest peer Hana Materials (also cheap imo) trades at EV/EBIT 9.
That's a 3X discrepancy.
They are NOT really exposed to memory prices- they are exposed to memory CAPACITY expansion- which will expand regardless.
They make silicon products which are consumables used in the equipment to make memory.
I have never done so before- but I have just turned on the 1 week free trial for my stack so you guys can get up to date quickly on the company.
Governance has kept the valuation low- but activists won the recent majority vote- and got the company to buyback shares!
The stock is -20% from my pitch and I sleep so easily because I know this company backwards.
There has been activist win after win that have exceeded my bullish assumptions. T
Mr. Market piles this into the same bucket as the memory trade- its anything but that!
Enjoy!
open.substack.com/pub/archet…
Davy retweeted
Happy Sunday,
where are the cheapest equity markets relative to economic growth? & most expensive?
October 2026 valuations (forward P/E | 2027 GDP growth):
🇨🇳 China: 10.2x | 4.0%
🇻🇳 Vietnam: 17.2x trailing | 7.5%
🇵🇭 Philippines: 9.6x | 5.1%
🇮🇩 Indonesia: 8.6x | 5.1%
🇲🇾 Malaysia: 13.4x | 4.6%
🇧🇷 Brazil: 8.6x | 1.9%
Vietnam seems interesting, especially with that growth.
Most expensive equity markets (forward P/E | 2027 GDP growth):
🇳🇿 New Zealand: 39.0x | 2.6%
🇳🇱 Netherlands: 20.1x | 1.3%
🇺🇸 United States: 19.4x | 2.3%
🇸🇪 Sweden: 18.7x | 2.2%
🇹🇼 Taiwan: 18.7x | 4.3%
🇮🇳 India: 18.6x | 7.0%
🇦🇺 Australia: 18.1x | 1.6%
🇸🇬 Singapore: 17.3x | 3.0%
Multiples based on each country's MSCI index.
🇰🇷 South Korea: 5.0× | 2.8%
Korea is a weird one because of memory...
Davy retweeted
If it’s a 4 year problem then going long memory should be thought of simply as - PE<4 - you basically make 100% after 4 years and then at least have residual afterwards if margins compress like crazy - the business is still worth something after - definitely.
Forward PE:
Samsung: 3.5
Micron: 5
SK Hynix: 3.1
Your assumptions are basically that LTAs hold…
Just some words of emotional support for your SK Hynix, $SNDK, $MU fanclub.
$DELL CEO on memory, suggested: "It's a 4 year problem because there's just not enough supply"
Factories take about 4 years to build, meaning new production would emerge 2029 or 2030.
and that semiconductor shortages could worsen in 2027 stating:
"I do think it gets worse next year in terms of demand and supply".
I think it's strange we're getting unprecedented forward visibility with memory... as $GOOGL and richest hyperscalers seek LTAs into 2035.
And a major sector crash as well over durability/financing concerns.
Davy retweeted
The three OpenAI employees who were fired last week have posted an open letter to OpenAI.
mikitabalesni.com/letter/let…
Davy retweeted
Has Volantis broken the memory wall using VSCEL?
GPUs wants more memory bandwith + more memory capacity.
Currently, NVIDIA stacks the HBM close to the GPU. It's limited because of the distance the bandwidth needs to travel from the HBM to the GPU.
Volantis- using VSCELs, solves this, rendering the distance a neglible factor, this means you can connect a lot more HBM to the GPU because the distance doesn't matter.
VSCEL is a mature technology.
The metrics are insane. Their A1 system boasts:
-15X Tok/$ Vs NVIDIA Rubin.
-6x Tok/W for low latency 1T + MoEs.
>30x lower latency for large-model inference.
The A1 system already works. Its being designed for >20T models and plans its inference engines for customers in 2027.
The team are a bunch of giga-Chads:
-CTO (Roy Meade) Led HBM at Micron $MU & early Ayar Labs exec
-Inderjit Singh - CoWos experience, NVIDIA
-Joe Chou (founding engineer) - Marvell, montage, intel.
-Chris Chase - VSCEL Tech (Bandwidth10 says Chase was a founder and VP of Engineering, and that the company has been shipping its VCSEL products since 2014.)
@semiDL CEO, Founder, Thiel Fellow. Ran Vathys a semiconductor hardware company since 2015.
Looks like VSCEL Tech is looking more and more interesting.
Excited to announce Volantis's $88M Series A.
We are solving Al's memory bottleneck by using optics, enabling chips with huge amounts of fast & cheap memory.
By boosting both the memory bandwidth and capacity per chip by orders of magnitude, we enable ultra-fast inference (up to 10,000 tps/user) for large models (>10T) - with low $/tok to boot.
Initially, this will enable insanely fast agents - think coding agents that finish in minutes or even seconds instead of hours.
More excitingly, optics is a fundamentally scalable way to increase memory systems. Not 2X/year, but by orders of magnitude across new generations. This will enable a structurally new Al industry, including restarting scaling laws, holding entire repos in context windows & more.
Our team has pioneered many core semiconductor technologies: the 1st CoWoS product, early HBM, the 1st silicon photonics CPO systems, the 1st high volume tunable VCSELs, the 1st processors to directly communicate using light & more.
We’ve already sent data >10× farther than equally tiny electrical wires inside a chip package. Our next iteration is already taped out and targets world-record bandwidth density over relevant distances, read more: volantissemi.ai/news-insight…
Davy retweeted
Had to get this one out quickly too, because earnings are coming out on the 28th, and I still have ANOTHER pitch I need to writeup.
-Revenue increased 25.6% last year.
-and adjusted profit increased by 380%
-Current EV/EBITDA is at ~5X. SaaS-Like business- hard to rip out.
-Dominant in a highly fragmented market.
-No customer concentration.
-Gross margins have expanded from approximately 50% in 2021 to almost 74% today.
-And the operating leverage is only now beginning to become visible.
-The latest guidance suggests adjusted profit to increase again.
-That is because this is fundamentally a highly scalable business.
open.substack.com/pub/archet…
Davy retweeted
"The mushroom told me once- this is what it's like when a species prepares to depart for the stars" (1998)
Just casually dropping direct quotes from fungus.
Karpathy often talks about how in a post-AGI world humans will view education the same way they currently view going to the gym.
Something that makes you feel better about your self and is mildly entertaining but isn’t really necessary for sustenance or income and is mostly optional.
With that analogy you can look at BCI as the equivalent of PED where hardcore autodidacts will pursue knowledge and intelligence to the max while most people will be content with an occasional brain-dump of the basics before they fuck off to their man-made island of sexbots or VR nirvana.
Shit is going to get so weird.
Davy retweeted
Nippon Chemical holding up extremely well.
You have Murata Manufacturing, Samsung Electro-Mechanics, Taiyo Yuden, etc selling off...20-35% down from their highs.
Then Nippon making new highs...
Money rotating from MLCC makers to MLCC materials?
It makes sense because Nippon Chemical trades BELOW book value- at P/E ~17, it's undervalued vs the MLCC makers who's valuations already price in a LOT of future earnings.
EDIT: Also, for revenue, the best lies ahead for MLCC materails, as MLCC capacity will need to expand to keep up with super tight demand. More MLCCs means more materials means more revenue for Nippon.
Nippon Chemical 4092.T is still trading below book which is quite striking.
Their electronics segment (mostly MLCC materials exposure) tanked in operating profit in 2026 but ceramics went up.
So next year, if the one offs and battery materials stabilize, could look FAR better for the segment.
It’s not all exposure to AI - Server though. It’s also consumer electronics, automotive etc.
But AI server MLCCs will mostly likely need the high end stuff- which is made using the hydrothermal or oxalate process.
Sakai uses hydrothermal to produce BaTiO3 Nippon uses Oxalate.
Also robotics which arrives in a few years is sure to stimulate far more demand.
It looks really good here.
Also, as an added bonus, the company has a facility (from 2022) that makes high purity red phosphorus- used for optics.
Davy retweeted
Soitec ($SOI) Q1 FY27 revenue was €113m, up 23% organically.
Photonics-SOI sales ~+100% YoY on volume.
Q2 revenue is guided to grow more than 30% YoY.
FY27 Photonics-SOI revenue is now expected to more than double from the slightly-above-$100m FY26 base.
Singapore is now qualified for high-volume production, while customers are signing multi-year capacity commitments backed by deposits.
Bull (almost idealistic) case: if Photonics-SOI becomes supply-constrained, Singapore fills, mix improves and scarcity supports pricing, Soitec could approach 40–42% EBITDA margins. I say idealistic because historically they acheive ~36% EBITDA margins, (40% margins were targetted by management before the photonics story really took off, make what you will of that...)
On €750m revenue, that implies €315m EBITDA.
At approximately €3.46bn of current EV, that equates to roughly 11x FY28 EV/EBITDA, versus about 13.3x on the pre-update consensus EBITDA estimate of €260m. So it's getting cheaper, but this is still a big bull case that needs to play out.
Would really hope it gets sold off more, if we go lower. $70 I would start feeling confident again.
Davy retweeted
UBS: $MU COULD REPURCHASE MORE THAN 40% OF ITS SHARES BY THE END OF 2028
UBS expects Micron to generate over $40 billion in free cash flow through 2028. Once its buyback restriction expires on December 9, 2026, the company could potentially use that cash to repurchase more than 40% of its shares at the current price.
Davy retweeted
Boom! 💥
Although! Hana Materials up 10% too.
A lot of this move is just Korea getting back into the Semis trade.
I think it had a lot more room to run based on the governance change.
MR MARKET, Yoo-hoo ,WAKE UP.
It’s Worldex, not “walldex”- that’s the translation error.
“corrected its existing corporate value enhancement plan and decided to repurchase and cancel 20 billion won worth of its own shares.
This clarifies its shareholder value policy, which had previously been vague, such as "reviewing an increase in the dividend payout ratio to the level of peer companies."
This marks the first time Walldex has repurchased its own shares in 18 years since 2008.”
“In the disclosure, the company also presented a mid-to-long-term roadmap to utilize 40% of total net profit for shareholder returns by 2028.
The intention is to share the fruits of future earnings growth with shareholders, going beyond one-time stock price boosts.”
Davy retweeted
MR MARKET, Yoo-hoo ,WAKE UP.
It’s Worldex, not “walldex”- that’s the translation error.
“corrected its existing corporate value enhancement plan and decided to repurchase and cancel 20 billion won worth of its own shares.
This clarifies its shareholder value policy, which had previously been vague, such as "reviewing an increase in the dividend payout ratio to the level of peer companies."
This marks the first time Walldex has repurchased its own shares in 18 years since 2008.”
“In the disclosure, the company also presented a mid-to-long-term roadmap to utilize 40% of total net profit for shareholder returns by 2028.
The intention is to share the fruits of future earnings growth with shareholders, going beyond one-time stock price boosts.”
Korean minority shareholders got a major win today.
I believe we will see a lot more opportunities like this play out, as Korean pro-shareholder legislation continues to benefit minorities.
Worldex (KOSDAQ: 101160) was historically guarded by controlling shareholders, until a historically passive shareholder turned activist-only a few months ago.
The controlling shareholders today- caved to the activists demands- over-hauling the dividend payout policy and calling for a buyback. Almost exactly in-line with what the activists called for.
Previous corporate governance plan:
Worldex said it would consider raising its dividend payout ratio to a level comparable with industry peers, targeting an average payout ratio of 10% over three years, while strengthening communication with shareholders. (which was a bullshit token governance plan)
Revised plan (today)
In the second half of 2026, Worldex will repurchase ₩20 billion of its own shares.
From 2027 through 2028, Worldex will return approximately 40% of annual net income to shareholders through a combination of: cash dividends; and share repurchases and cancellations.
Worldex will strengthen communication with shareholders. The company will implement the plan while maintaining balanced capital expenditure and financial soundness.
Davy retweeted
In my view, today’s announcement confirms the governance part of your thesis. The controlling family has finally given in to shareholder pressure after minority investors rejected their compensation proposal.
I think the stock is now set up for a re-rating as investors start to realize that much more cash will finally be returned to shareholders.
I’m surprised this hasn’t attracted more attention. The thesis is quite complex, but the result is easy to understand: shareholders should finally benefit.
Congratulations, you called it.
Davy retweeted
Korean minority shareholders got a major win today.
I believe we will see a lot more opportunities like this play out, as Korean pro-shareholder legislation continues to benefit minorities.
Worldex (KOSDAQ: 101160) was historically guarded by controlling shareholders, until a historically passive shareholder turned activist-only a few months ago.
The controlling shareholders today- caved to the activists demands- over-hauling the dividend payout policy and calling for a buyback. Almost exactly in-line with what the activists called for.
Previous corporate governance plan:
Worldex said it would consider raising its dividend payout ratio to a level comparable with industry peers, targeting an average payout ratio of 10% over three years, while strengthening communication with shareholders. (which was a bullshit token governance plan)
Revised plan (today)
In the second half of 2026, Worldex will repurchase ₩20 billion of its own shares.
From 2027 through 2028, Worldex will return approximately 40% of annual net income to shareholders through a combination of: cash dividends; and share repurchases and cancellations.
Worldex will strengthen communication with shareholders. The company will implement the plan while maintaining balanced capital expenditure and financial soundness.
Davy retweeted
Korea's governance reform is experiencing a very similar progression that we saw with Japan- and look what happened there.
Even companies that were not AI beneficiaries did really well. Activists now have more clout.
Korea looks similar now, and turns it into a real hunting ground for activists.
We have ALREADY seen major progression- look at VIP Asset Management with Worldex- once an always passive asset manager turned Activist- and WINNING.
--> Jul 2025: directors owe duties to shareholders, not just "the company."
--> Mar 2026: newly bought treasury shares generally must be cancelled within a year.
--> Jun 2026: expanded treasury-share disclosure; exchangeable-bond loophole closed.
--> Jul 23, 2026 ... 13 days out: largest shareholder + related parties capped at a combined 3% vote in audit-committee elections.
A 35% founder votes like a ~3% holder there- LOOKING AT YOU WORLDEX.
--> Sep 10, 2026: mandatory cumulative voting at large caps (assets ≥ ₩2 trillion) a 15% bloc can concentrate its votes and seat a director. Plus two audit-committee seats elected separately.
--> Jan 1, 2027: hybrid shareholder meetings mandatory for large firms.
--> In consultation now (ends Jul 14): FSC / Korea Exchange draft rules to block abusive parent/sub split listings. The one line not yet law.
-->The tape says it's biting: ₩43.1 trillion of treasury shares cancelled Jan–May 2026 vs ₩21.4 trillion in ALL of 2025 — 2x, in five months. (FSC data)
-->Who benefits: holdco-discount names, treasury-heavy balance sheets, activist targets. SO Worldex basically.