Emulex had a previous takeover offer, and now the stock is trading at multi-year lows. Emulex's technology and IP is valuable to competitors. At this price, Q-logic or another competitor could pick up Emulex for a firesale price. Q-logic has cash on it's debt-free balance sheet, and ought to make a run at ELX. On the other hand, Emulex ought to deploy its massive cash pile to buy back its own shares. Emulex has enough cash on its balance sheet to buy back half of its outstanding shares, which would cause its EPS to double!