Raouf did his best to pump the stock with the known information but he could not have announced a beat in revenue because that would have been self serving since he knew he was selling following the meeting and if something happened during the last 2 weeks of the quarter and they could not meet that, then it would be jail time. Now if he comes up with an announcement that narrows down the numbers to the upper range of the guidance we will be back above 5 real quick. He has one week to do it. I am still a believer in the technology but Raouf ticked me off with his repetitive stock sales this quarter, who knows may be had a margin call that forced him to throw the baby out with the bath water.
Why are you a believer? In what technology? Mindspeed is a has-been, me-too company. The IP has quit or been let go to control the cash burn. There is no IP in house for future R&D. They bet the farm on Picochip and the numbers are not there. HPA revenue heading lower. WAN gone. This company is the walking dead. The game is to prop the numbers while insiders sell ever share they can award themselves.
Based on a review of the technical charts, there is minor support here in the $3.70s. However, it looks like it wants to go lower. At approximately $3.44 there is very solid technical support for the Mindspeedster. But you never know with this stock, as the ups and downs are extreme. I suspect it holds at $3.44 unless the market has a more to go on the downside. As a momentum trader (3 plus months or longer), I say this is still a bull market and corrections are healthy.
next gap closes at $3.60..200 DMA..~ same. Think high beta names are getting hammered in anticipation of summer selloff. idk if broadcom's entry into the market is spooking a larger holder that decided to get out.
The Notes will be convertible into shares of Mindspeed common stock at an initial conversion rate of 256.4103 shares of common stock per $1,000 principal amount of the Notes, which is equivalent to a conversion price of approximately $3.90 per share of common stock, subject to adjustment in certain circumstances.
This initial conversion price represents a premium of approximately 30% relative to the last reported sale price on June 11, 2012 of Mindspeed’s common stock of $3.00.
On or after June 15, 2013, in the event that the last reported sale price of Mindspeed’s common stock exceeds the conversion price then in effect for 20 or more trading days during any 30 consecutive trading day period ending within five trading days prior to the date Mindspeed receives a notice of conversion, Mindspeed will, in addition to delivering shares upon conversion of the Notes (and cash in lieu of fractional shares), make a “make-whole premium” payment in cash, shares of Mindspeed common stock or a combination thereof, subject to certain limitations, at the option of Mindspeed, equal to the sum of the remaining scheduled payments of interest that would have been made on the Notes to be converted had such Notes remained outstanding through the earlier of the date that is three years after the date Mindspeed receives the notice of conversion and June 15, 2017.
On or after June 15, 2015, Mindspeed may redeem for cash all or part of the Notes if the last reported sale price of its common stock exceeds 150% of the conversion price then in effect for at least 20 trading days during any 30 consecutive trading day period ending within five trading days prior to the notice of redemption and certain other conditions are met. The redemption price will equal the principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date, plus a “make-whole premium” payment in cash, shares of Mindspeed common stock or a combination thereof ...