"As Hans Mosesmann of Raymond James, who has a Market Perform rating on the stock, writes today, signs are the deal will, indeed, get all the approvals it needs:
With unanimous approval by OmniVision’s board of directors and shareholder approval secured, the next hurdles include attaining approval from agencies in the U.S., Taiwan, and China. To date: The company has received early-termination of the U.S. HSR Act from both the Federal Trade Commission and the Antitrust Division of the Department of Justice (May 26, 2015). Divestitures required to secure Taiwanese regulatory approval are underway; on August 19, 2015, OmniVision announced an agreement for TSMC to purchase all shares of VisEra Holding Company (joint venture with TSMC) owned by OmniVision for approximately $111.14 million. Yet to be secured: U.S. CFIUS approval, Taiwanese regulatory approval, final approval in China (MOFCOM), and other customary closing conditions. We continue to believe the deal is unlikely to meet resistance from U.S. or foreign agencies due to competitive or national security concerns, and should close as planned."
jctuttle14, which stock you talking about? (ask a question, may be able to help) what other yahoo boards do you post. under $2
What's done is done. Shareholders could have voted down the deal, which they did not. The best course for ones left is to wait for the deal to close. I do not see any reason the deal may not get approved by the regulators. The one reason the deal may fall through would be that Hua is not able to raise the cash given the turmoil in the China market and that I suspect is the reason the pps is discounted this much. Other than that this is probably a best place to park the money till the market volatility is over. As a long time holder of OVTI I do not mind either of the outcomes.
You throw the dice and if the deal gets approved your a 25% winner .
If the dice falls on snake eyes and the deal doesn't get approved then your an instant 30-40% loser.
Perhaps ~ $20 is a more appropriate "holding" price until the decision is forthcoming.
I would say its time to reconsider the correct "limbo" price until a approval/disapproval decision is made public.
My guess is $13-14.
Thats a nasty hit to have to take hoping that the deal gets approved.
Given that current year fy16 estimates are taken way down to $1.36 from $2.09 last year how low will the stock price go if it gets blocked?
This pig could use a refresher. Stockholders praying their Chinese fellow thieves will take this private are left with few options. When this deal closes we have a huge profit from 23.09. Right. Go ahead and put that contract in for your beach home. What suckers we longs have been.
Methinks the game is up. This puppy is not flying under the radar any more and is getting some attention. Look at the volume.
High frequency trading programs do not comprehend news stories. They only understand individual words or phrases and technical indicators. So, for now, the OVTI stock potentially represents free money.
Well, does it really matter?The bottom line is that the company has a buyout offer which in my opinion is on track to be closed. I am amazed as to the disconnect in the current pps v/s the buyout price. I can understand hedging against the slight chance that the buyout does not go through. But a 30-35% spread is just ridiculous.
It's not the company. They can't do anything that would take the stock out of the hands of the traders and option players. And besides the company (insiders) have a very good idea if and when the sale of the company will take place. At that time they will all become happy campers. Why should they worry about the share price between now and then?