Our investment case is that critics have an oversimplified view of cutthroat competition as the sole problem besides the inventory situation (which according to FPC will be solved at the end of Q2). We argue that there are other temporary but surmountable issues as well. The Q1 report and its solid underlying margins did not affect our idea. Excess inventory aside, FPC operations seems to be on the right track with e.g. two new module house partners and a continuing strong smart card positioning. Our base case is cut in half to SEK 58 (120). In relation to the depressed FPC shares and our new bear case of SEK 22 (36) our valuation implies an attractive risk/reward profile. We expect the Q4’17 figures to come in above consensus and narrow the price/value gap.