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Cirrus Logic Inc. Message Board

  • gr0operator gr0operator Mar 4, 2013 11:08 PM Flag

    MHO... and Only

    MHO. Should the market really tank and Cirrus drops back to 15, 16 and stays there for very long, I think Cirrus management will get creative about how to fix this problem for the long-term. Could be going private, could be selling c-bonds and buying a ton of stock, could be borrowing money and buying stock, could be ideas that I have no idea about. I think they will do something that has large long-term benefits.

    I will discuss more about why I think that this will happen later. The story does get interesting and the market dictated requirement for rewards does fly directly into the face of honest companies. Go back and read what Buf-fay wrote to Cook today.

    Grade Zero

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    • seems kind of counter on JAson's focus of creating great products... As that would focus a lot of the companies attention and resources on the stock price and not the products. Jason should keep doing what Jason is doing and on a long enough time line this will all work iteself out.

      • 1 Reply to tavisman01
      • They are very interested in the price of the stock long-term. At one point, they bought a third of the company with cash on hand. They face a different situation in that they will have a ton of cash on hand shortly where right now they have a lot of cash on hand and a big time manipulated stock price, something they are not at all happy with. A significant part of the ability to hire is to provide stock options that will prove valuable when the team preforms. Did that just happen?

        A few years ago, V&P in Germany merged quietly first by buying and retiring about 1/2 the stock and then reissuing. When the call came in the turn the stock in, the shorts had to cover with only about a half of the stock available to do so. At one point in the first part of the trading day, the price was around 400 instead of about 50 or so the day before. The total short losses were about 100 b einhorn alone was about 10b. The German government then leaked emails explaining this was done on purpose to provide a lesson to naked shorters. I do not think that Cirrus would or could do something like this, but their situation does allow them some ideas. Some more. Buy directly, from a fund(s) who want to exit. They can do that. There is all kinds of stuff. Buy a lot of stock back and then basically ask for a right to reissue. If the short interest is high like 12 m, and there is less stock like a third, watch out. As long as the shorts continue to have free hands here, we they will always endure a major level of painful manipulation.

        More later,

        Grade Zero

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