Took out a sizable trade today. I think that the current downturn in share price is a bit too fast and too soon and with the div a few days away the valuation seems in line.
MCHP along with ADI are by far the best board makers in the world. TXN products are a joke despite their popularity. I personally like ADI better overall however the price decline in MCHP is too hard to ignore and so is the startling short interest... as of 4/30 there were 20,108,212 shares short... that has undoubtedly increased this last week. During the previous dividend nearly 1.2m (or about 5%) shorts covered before the div.
When you take into account market movement, it seems that MCHP is poised for a pop. All it needs is a market up day and if that happens before ex-div then I wouldnt be surprised to see it move up to $33 in the blink of an eye as short shorts (no pun intended lol) also cash out or cover to avoid paying a dividend. On top of that, every technical indicator is screaming sell... which to me means its time to buy lol.