Sunday, August 19, 2018

Asset valuation: What’s the financial value of your organization’s assets?

Asset valuation is the calculation of the fair market or present value of a given business asset. Assets can be tangible like buildings and computers, and intangible like brands and patents. Each of these has a given value examined through techniques such as using book values, option pricing models or comparables, and absolution valuation models such as discounted cash flow analysis. 

Image source: Pixabay.com    

Asset valuation is done for a wealth of purposes, such as investment analysis, capital budgeting, financial reporting, merger and acquisition transactions, determining proper tax liability, as well as litigation. There are three types of value of an asset or liability: fair market value, fair value, and intrinsic value. For instance, the intrinsic value is mostly subject to personal opinion and may vary from one analyst to another. 

Asset valuation is done using one or more kinds of models. Absolute value models, for example, determine the present value of an asset’s future cash flows. It could be multi-period models (e.g., discounted cash flow models) or single-period models, and both rely on mathematics instead of mere price observation. Relative value models, on the other hand, determine value based on observing market prices of similar assets. 

When a plant asset is bought using cash, the acquisition cost is simply the agreed-on cash price. But when a firm acquires plant assets in exchange for other non-cash assets such as stock shares, it’s more difficult to establish a cash price. This makes it important and critical to undertake asset valuation with an expert eye. 

Image source: Pixabay.com

Ryan Jacob helps clients in the semiconductor industry monetize their assets efficiently, source assets they require for their operations, conduct due diligence, and settle transactions safely and effectively. Learn more on this page.

Thursday, July 12, 2018

Key Trends Driving The Semiconductor Industry

The semiconductor industry has been seeing unprecedented growth in recent decades, driven by an increasingly digital world, advancements in nanoengineering, and a global market hankering for the latest in computing and communication devices.  Revenues continue to grow, even as businesses are scurrying to modernize their IT systems.  Let’s look at what’s in store for the industry in the coming years.  

First, and driven by the high costs of constant machine upgrading, is a shift in demand for more powerful yet low-cost integrated processors.  Many semiconductor companies are focused on transitioning to 14/16nm technology chips for better cost benefits, especially as many consumers are now more interested in mid- and low-end smartphones instead of flagship models. 

Image source: mckinsey.com

This growing practicality is a product of market saturation in China and the U.S., coupled with an increased demand in emerging countries.  Companies like Xiaomi and ZTE are now getting a better market share.  Also, the shift to more power-efficient chips is greatly affected by the movement toward LTE and 5G technology, which should be the standard by 2020.  Industry leaders like Micron Technology and Qualcomm are keen on producing 10/7nm nodes. 

Finally, statistics show that 91% of smartphone sales are now for existing users and are expected to go up to 94% by next year.  In short, the market is now mainly composed of already-existing users just upgrading their devices.  The semiconductor industry and its affiliate tech giants must therefore continue to develop innovative products as new users decline and replacement cycles lengthen. 


Semiconductor industry leader Ryan Jacob of Capital Asset Exchange & Trading (CAE) helps clients monetize their assets efficiently, source assets they require for their operations, and settle transactions safely and effectively. For more insights on the semiconductor industry, visit this blog.

Thursday, June 28, 2018

Considerations In Purchasing Used Semiconductor Equipment

Image source: celestica.com
Acquiring used semiconductor equipment may have plenty advantages, but it also comes with greater risk relative to new equipment. Thus, buyers should cover all considerations in such a purchase. A few of those are listed below:

Update of firmware or software license

Most preowned semiconductor equipment nowadays are software- and firmware-driven and modified to fit the requirements of the previous owner. Both software and firmware should be updated to the current versions and tested to ensure that the equipment meet the buyer’s specifications and are not vulnerable to loss of data or attacks.

Maintenance and support

More than the price tag, when looking for used semiconductor equipment, the warranty and maintenance programs, as well as support options, should be checked. This way, reliable operation throughout the intended, remaining lifespan of the product can be ensured. The equipment’s maintenance history should be inspected, too, so that its dependability can be guaranteed. If the record shows that the equipment has had an unusual number and type of problems throughout its usage history, it should be avoided at all costs.

Image source: electronicsweekly.com
Reputability of seller

One of the most important considerations is the reputability of the seller or broker. A simple research of the company can take the form of checking its website, online reviews, or other readily available records.

Ryan Jacob of CAE (Capital Asset Exchange & Trading) helps clients in the semiconductor industry monetize their assets efficiently, source assets they require for their operations, conduct due diligence, and settle transactions safely and effectively. To read more about the subject matter, visit this website.






Wednesday, May 31, 2017

Different Realities: Understanding Ar And Vr Technologies


Virtual and augmented realities were once ambitious projects.These days, people are getting accustomed to having these two technologies integrated into everyday life.

Image source: Linkedin.com

In the 90's, virtual reality became a buzzword.  With widespread Internet and PC use, the thought of having an alternate world online where people can participate seemed promising.  However, VR-related projects fizzled out, only to return as more polished and powerful technology.  On the other hand, the production of the Google Glass along with other games and gadgets in recent years was the first of mainstream projects that used augmented reality.


Many people still confuse virtual and augmented realities.  Here are some ways to differentiate the two:


VR brings a person to a simulated reality whereas  AR  incorporates virtual images into the real world.  For example, VR games require a headset like the Oculus Rift to get the whole experience while AR games like Pokemon Go incorporate elements from reality into the game by using real places.


The goal of  virtual reality is to isolate the person from current reality and introduce a new reality where he or she is also free to move.  As for  augmented reality , a person can improve what he or she sees by adding elements that weren't even there using gadgets such as smartphones.


It seems that  VR has a strong market among gamers, users of social networks, trainers, and educators.  Isolated experiences can be used to teach and train without going outdoors.  On the other hand, AR has a market in design, retail, social networking, and also in gaming.  By adding virtual elements into a person's current experience, users will be able to try something new even before it materializes.


Image source: Businessinsider.com

These two technologies are relatively new and users can only look forward to how these can further benefit their daily routines.


Ryan Jacob  is the CEO of Capital Asset Exchange and Training (CAE).He is responsible for designing, implementing, and refining the company’s trading operations, incentive systems, software, analytics, and data systems. Visit this  page  for more information on the company. 

Saturday, May 20, 2017

A Primer On Pricing Assets During Liquidation

Earning money from the liquidation of capital assets is no small task, especially when the goal is to pay off creditors promptly. Creditors would often demand that each asset be sold to as close to its fair market value as possible, not an easy task given that used capital does not usually sell at the prevailing market price due to depreciation.

Image source:caeonline.com


The first thing that sellers should do when liquidating assets is to perform an inventory of the items to be sold. These would then need to be priced, either through research or evaluation from an appraiser. Once this is done, the seller would then have a clear idea of the potential value of their assets.

Time is a critical factor in determining the price of each inventory item. Getting the best price for assets in the inventory usually requires time to properly find the appropriate buyers. Sellers with little time on their hands may need to sell at discounted prices to attract buyers and close sales quickly, especially when it comes to smaller equipment such as office supplies and computers.

Taking their time would allow sellers to maintain and clean equipment before selling. Sellers can command better prices for well-maintained equipment, as buyers looking for bargains often appreciate a pre-owned item that’s in demonstrably good working order.

Meanwhile, more illiquid assets—that is, large specialist equipment with a limited market like industrial machinery—will inevitably be sold at a much slower pace, owing to the difficulty of locating and securing a buyer and the logistical challenges involved.

Image source:caeonline.com

Finally, professional assistance can help sellers price their products appropriately and lend a hand in planning and executing complex sales.

Ryan Jacob serves as the CEO of Capital Asset Exchange and Trading (CAE), a marketplace dedicated to facilitating the exchange of hitherto illiquid capital assets such as semiconductor equipment. Learn more about the company and its equipment marketplace from this website.

Thursday, April 20, 2017

What Makes For High-Quality Semiconductor Products?

Semiconductors probably head the list of innovations that people are not very aware of, but are highly dependent on. Mostly any electronic device involves a component that runs on a semiconductor. But what makes for a high-quality semiconductor product?


Image source: wisegeek.com


Semiconductor producers who have managed to stay in the game for a long time know that the industry they are in is quite unpredictable. The winning formula has always rested on a number of crucial factors.

The relative size of semiconductors has to be small. This is because, in its construction, finer lines allow for more transistors to be packed onto the exact same chip. With more transistors at its disposal, the chip can fulfill its work in less time.

Of course, high-quality semiconductors also need to be able to last long enough. In the business of chip manufacturing, this is classified as a superior good. Typically, the current day’s technology will be inevitably outclassed by the technology that will be in place in the next three months. This means that in terms of the standard of quality for semiconductor products, the yardstick is a very dynamic one.

Finally, quality production in the semiconductor industry would require state-of-the-art products to be manufactured at high volume. The demand for semiconductor components will always be great.


Image source: powerelectronicsnews.com

For instance, the next smartphone promises to be faster, higher in memory and packs more power in a small space. The succeeding wave of development will need a more advanced set of semiconductor components. In this industry, it’s really that simple.

Led by Ryan Jacob, Capital Asset Exchange and Trading (CAE) has a data rich and predictive understanding pricing dynamics within the physical semiconductor commodity markets. To know more about the semiconductor industry, visit this website.

Wednesday, February 15, 2017

How The Semiconductor Industry Is Benefiting From Rising Drone Use

Commercial drones are becoming a necessity for businesses. Industries such as shipping, photography, agriculture, engineering, and construction are appreciating the convenience of these unmanned aerial vehicles (UAVs). As the demand for these devices is rising, the need for semiconductor chips is also following suit. Being the central parts of a device, microprocessors and microcontrollers will face a steady rise in demand in the coming months.

Image source: Flypropjet.com
Semiconductor companies are investing money in research and production to advance drone technology and increase the efficiency of semiconductors used for UAVs with different purposes. At present, drones for public use are showing a lot of vulnerabilities that could be exploited by hackers and attackers. While companies are trying to fix security flaws, the semiconductor industry is already gearing up for increased and strengthened use for these drones.

As drone technology is continually being industrialized, drone manufacturing companies are also teaming up with semiconductor companies in designing more efficient models with a wider range of functions. In the coming years, the semiconductor industry is expected to earn billions of dollars thanks to the widespread business and individualized use of drones. For now, the industry has to coordinate with authorities and UAV companies to ensure that this new technology will be safe for public use.

Image source: Askmen.com
Ryan Jacob is the CEO of Capital Asset Exchange and Training (CAE). He is responsible for designing, implementing, and refining the company’s trading operations, incentive systems, software, analytics, and data systems. Visit this page for more information on the company.