As cheap as this stock is now and with their strong balance sheet, it would seem they are a prime candidate for a buyout. I don't know what company would be a suitable acquirer though.
Also, for some reason tech companies tend to be momentum investors rather than value investors. They like to make acquisitions when they have to pay an arm and a leg during a market bubble.
It seems to me probably one of the weaker points of ENTR would be that it is medium sized and sells chips designed for limited niches. There is a certain appeal to buying tech products from companies that are in a broader spectrum of markets. For example that's one reason I own Cisco stock.
Sometimes a tech company with a good product line may benefit from the clout of being a subsidiary of a company that is more of a household name.
Not sure how much this is germane to ENTR but based on my admittedly very limited knowledge of this business it seems like it may play a role.
Having Trident's SoC product line ought to help in that regard.
No way! I'm holding all my shares and am confident the stock will recover in good time (probably less than 6 months). Who knows what Blackrock or Vanguard Funds might be up to. They both have HUGE investments in ENTR and I'm sure are as upset with Henry and his constant excuses as we are. I really think this will end in some sort of hostile type takeover if these funds can get Board seats and get Henry out. There are other funds who have been accumulating lately also. They are tired of the management BS also. The Needham downgrade is meaningless. They have been selling since last November and may be almost out, if not completely. Who listens to analysts anyway! Always do the opposite of whatever they say, but you already know that. You're the smart one on this board and I sincerely mean that. We will make money in good time Cleveland!
Buyout is unlikely because no other company would want the current Entropic management. If a buyout were to occur ENTR management would be shown the door rather quickly. A hostile takeover, is however, a good possibility at this low valuation. Millions of shares could be bought under $5 and the new major shareholder could demand Board seats. They would most likely want Henry out ASAP and bring in a new CEO that can get the job done. This company has great products and plenty of cash and could be turned around with the right management that isn't sucking the life out of it with stock options, etc. Founders need to know when it is time for them to leave and bring in competent management. When that happens this stock will soar!
exactly right. THe management probably has some provision whereby they can't just be shoved out the door. It's the "agency dilemna". They are supposed to be working for shareholders, but in reality only work for themselves.