InvenSense borrows $150 Million @ 1.75% per year with payments due semi-annually at a cost of $2.6 million interest. The loan can be repaid in cash or stock at InvenSense's option. The initial conversion price is $21.89 per share. The hedge fund has the option to buy additional shares to make certain that the company has the funds to repay the debt.
This is an incredible deal for InvenSense. Any business would accept terms like that.
Dan like most of us is a trader, not an investor. Personally, I trade in and out daily. I generally do not hold overnight and I certainly do not hold through earning release because for the stock to go up, everthing must go right: revenue, earnings, margins and future projections. Mathmatically unlikely. I did miss out on the run-up two releases ago, though.
I prefer to make money on the upside which is why I say "strong buy".