Jul. 19 at 3:42 PM
$SIMO GAAP requires accounting for unrealized gains on the income statement per ASU 2016-01. This is, I guess, the reason SIMO reported a GAAP long term gain of 21,759 and a subsequent increase on long term investments on their balance sheet in Q1. This inflated their GAAP earnings pretty substantially. Even more interesting is the long term gain they are likely going to report on their Q2 earnings. If I read this correctly, they are invested in both BIWIN and TWSC. Both of these are Chinese corporations and both had share price gains of around 140% in Q2. Which means... drum role.... SIMO is going to have report about a GAAP long term investment gain of 70M +-5M in Q2. Which leads me to believe with their base business booming, that they could actually report over 100m GAAP NI for Q2 if they only just meet the high end of their guidance.
