PLXT has said they do not see IDTI in the market at anything close to the level of a few years ago. I suppose IDTI still picks up the phone when you call to request PCI express.
They banned the merger with IDTI at ~$7 a share (versus current $6.50) in December of 2012, on antitrust grounds when only 25% of the business is in the U.S. Since then IDTI has essentially removed itself from the market. This fall PLXT will be gobbled up by a Singapore based company... along with all the technology. The jobs will stay for awhile but 3 years from now, don't you think most of them will be gone? I love my government. A great result for America???? My bet is that the FTC doesn't care a whit. Other opinions???
My take is they cast a wide net looking to sell the company and that $6.50 was the best offer. Why would Potomac take less? I, too, was anticipating more but apparently PLXT's moat isn't as wide or deep as I hoped.
Any chance IDTI takes another run at them? Maybe there are no longer antitrust concerns since IDTI essentially dropped out of the space? Potential growth engine? And maybe available for about same price as earlier deal?
1. They have assembled a very impressive team of top managers. 2. They seem to have a reasonable business plan. 3. I'm not sure if the price point works.... $300 for transmitter and $100 for each device's receiver... if I understand correctly. What do others think of the price point... good? or DOA? Thanks.
RE: "upward energy prices will compel growth in their most profitable segment." With CAFE standards and new vehicles achieving ~3% annual mpg gains along with L.E.D. light bulbs(~13% of residential electricity goes to lighting) which consume ~1/6 the electricity as incandescent maybe the upward trend in energy prices is about to take a hiatus? A call outside conventional wisdom but then.... who saw the fracking revolution 10 years ago?
Seems rather unlikely another bid will emerge after this much time, no?
Correct, how can they raise something they have not provided; they give margin guidance and ....growth guidance for PCI express.... which they keep saying is 15 to 25%... and they talk about addressable market including express fabric of something like $500 million by 2017 or 18.
Agree again on guidance for q2 but it is the annual revenue guidance which has not been raised.... although they confirmed 15 to 25% growth for PCI express products on the call.... but have not raised guidance for entire year 2014... yet???
I agree w your analysis.... but I think they are likely sandbagging on the revenue guidance. My guess is that the customer that changed distribution modes was the smallest of their big three distributors... Answer Tech .... which represented 13% of 2013 revenues. That's just a guess but PLXT said that the one customer that changed their business model and bought next to zero in the quarter so it could not have been one of the two bigger ones.... so if I am correct that was a 10% plus hit to revenues... and if you take 13% that would be about $3.25 million per quarter so actual run rate for PLXT may currently be at about $30 million with this customer back on line. I already have a full position but would buy more if I did not. I'm no expert so take anything I write as message board blather.
I think I read that they have not yet been granted any patents, but have filed for 30 to 40. Maybe we should ask ourselves why the big venture capital players in silicon valley did not fund this latest round? Are they stupid ?not in the loop ? or maybe they looked and passed? Does it worry you that the company only receives/received ~$25 million while much of the $5 increase over the offer price of $6 allows the investment bankers who brought this public to make a huge killing? How is the valuation being justified... not on revenues or profits but hope?
And that works out to about $.25 a share.... why should anyone buy now at $11? Check out the S1. No revenues, no profits, but why worry?
Still in with some shares bought back in 2006 but most in 2008 (total 47,700 shares) with average cost of $9.87. Not much of a trader. I still feel HUN is a better company than it was in 2008 when Leon offered $28 a share. Of course, with globalization and competition you wouldn't last without continuous improvement. Good luck to all.
Living at 42 degrees north latitude in a cloudy (northeast US) area makes solar and solar charging stations economically prohibitive, so maybe a Tesla won't be green here but maybe where you live?