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PLX Technology, AŞ Message Board

  • imadeadcat imadeadcat Dec 20, 2012 11:36 AM Flag

    "Sour Grapes" and other thoughts

    1. Sour Grapes. IDTI has only $19 million in sales in the sector the FTC objected to as being monopolized. At that size IDTI may not see adequate returns and decide to quit the market for PCI e chips. So much for competition being enhanced by the government (FTC).
    2. PLXT says they have cut costs by $20 million since the deal was announced. Those cost cuts may be enough to justify the current $3.70 stock price.
    3. At just ~$120 million in sales and with but 200 employees PLXT is too small to justify remaining a listed company with compliance costs .... maybe $5 million plus a year. Ergo, PLXT is likely to be sold. To whom? When? PLXT may have to justify the increased efficiencies for a few quarters to prove efficiencies exist in order to generate a maximum return for their shareholders.

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