Hard to imagine the huge drop after TRID made the deal and the positive position by Neuberger. Somebody is making a big mistake. My first impression is the stock would head over $4. Now we cannot hold $2.
I listened to the conference call finally and didn't find it as dismal as Mr. Market found it to be. I even found signs of encouragement. So I continue to hold my shares.
On the other hand, the investors who own NXP (a privately held company) don't sound particularly bright. NXP seems to have made a series of missteps to get into the bad position in which it currently finds itself less than three years after having been spun off from Philips. The fact that NXP bought the set-top-box business from Conexant in August 2008, and is now trying to get rid of that business, sounds like the flailing of a poorly managed company. The fact that NXP had to bring in a "turnaround" CEO a couple of years after the company was founded is also not a good sign.
On the other hand, maybe NXP's turnaround CEO is smart and maybe the decision to essentially buy a big chunk of Trident stock as an investment is shrewd. Only time will tell. At this point I don't have a strong opinion one way or the other.
Silverlake Partners is one of the owners of NXP and hence will be an indirect owner of Trident if the deal closes. My previous experience with Silverlake is that they provided a big infusion of cash to Syntax-Brillian in late 2007, right about the time I exited from that stock. Syntax-Brillian was pitching itself as a big turnaround opportunity at that juncture. About six months later, Syntax-Brillian filed for bankruptcy.