I think it's a very good long term bet (1-3 years) that this company will prevail and the stock will again see the 20's. They made a (huge) mistake but have the capacity to repair the damage or be bought out by a rival.
Nasdaq still showing 91.8% institutional ownership as of 6/30/15 and 1.54M shares held short. It does not appear that the numbers are up to date because they also list MX share ownership of 919K for Pleasant Lake Partners and not the 3.363M shares reported to the SEC as of 6/30/15? They just reported the 6/30/15 numbers today, 3 days after they were scheduled to report this data... We could definitely see a short squeeze coming in the next few weeks.
Other institution buying/selling aside the purchases of Pleasant Lake could put the institutional ownership at over 100%! They have purchased about 6% of the company stock over the last 3 month period. Nasdaq will report this short % tomorrow, July 10. That may be why it popped today.
Institution holdings down 2% to 92% but the short interest has increased by 1% to 4.7% or 1.6M shares. That's about 3-5 days to cover with typical daily volumes. The chart suggests that this stock is ready to pop again, moving up in steps every 2-3 weeks. Data from Nasdaq dated 5/31/2015.
with stock and option purchases. They now have 2.64M shares through many purchases through 6/8/15 and a few thousand option contracts closing in June and Sept, mostly $7.50 contracts. The latest short data shows about 1.6M shares short (Nasdaq info), increasing over the last month so this could be an interesting battle or short squeeze. The institutional ownership is now listed at 92% leaving only 2.7M shares that are very liquid in the market. Institutions tend to hold on for the long term, looking for long term growth opportunities. MX is in the strongest semiconductor market, Analog, but does not seem to have capitalized on that fact, instead growing manufacturing, sales and product diversity. If they straighten out their mismanagement, this stock could see $20-$50 share price easily.
Shorts never thought this stock would rise but with very high, stable, institutional ownership (94% currently according to Schwab) and SEC filings up-to-date, new management, who knows how high this can go. The stock never actually rose to the levels it could have given their historic reporting "profits". As an analog company, it's time that they realize parts do not have to "given" away. They need to look at the operation of Linear Technology and not take every order with miniscule returns.
Latest ownership suggests the long term outlook is favorable on this stock. There are only 2M shares in the "public" market for non-institutional investors. MPWR, a similar stock has gained over 600% in the last 5 years, I think because the institutional ownership has been over 100%. Short sellers have taken a bath on that one. The Analog IC market is one of the highest profit percentage markets within the semiconductor field. This company has gone through a rough patch in the last couple of years due to "cooking the books", claiming sales before parts are sold from distribution. Hopefully, they will "catch up" to the sales through actual end-market sales over the next 6-12 months.
A report by Zacks on the 14th of May is rating MX a buy. They need to get over their reporting delays and turn their large sales numbers into profits instead of spending it on accountants required to satisfy the SEC. The cost of rebalancing balance sheets is extremely high emotionally and labor wise. The analog IC market is still strong and they are a contender in that space. A takeover...I don't think so. What they need is a new strong management to pull them out of this problem.