Read the 10Q! Plenty of interest if IDTI doesn't want to fight the FTC. Although, they have a good chance of winning in court. Buyout coming either way!
Hopefully, the FTC is smart enough to see that there are plenty of substitutes to PCI-e and that the barriers to entry are low.
One could argue that the PLXT/IDTI deal is pro-competitive in that they would be a stronger alternative to INTC and AMD, which dominate the space.
Intelligent replies only, please.
AH trading suggests that at the very least, the ILMN offer will force the chinese to match or beat $3.30. But because of the FTC approval risk, I wouldn't bet on it. I am taking the 3.30 while I can. Of course, ILMN can also pay up for the extra approval risk...$4.00 might be enough for the GNOM board?
Pref dividends safe, may we see $15?
The NY Post and Dealreporter stories were planted. The NY Post article talked about a specific meeting that afternoon that was going to block the deal. Well that was two weeks ago, and IDTI and PLXT knows nothing of that. In fact, they are still in the process of assembling information for the FTC..."compliance with the second request expected in November". Certainly, the FTC has concerns, but why would they make a decision before the parties have supplied all the requested information? Whoever planted that info sure had a successful trade. And the NY Post journalist have lost all credibility. He did the same thing with DTG last week. Is he getting kickbacks??
Now we need to assume:
1) PLXT/IDTI are smart enough to see it the same way
2) That they can communicate it adequately to the FTC
3) That the staffers at the FTC are smart enough to see that a high combined market share is NOT enough reason to oppose a merger
Judging from the spread the deal is toast. However, no official news has been released. Smelly!
Don't assume that the US Post article is correct. Some Hedge Funds/Prop Traders are masters at planting mis-information that they can profit on.
I agree. Like I have said before, if you are only long equity in VQ you might get better odds in Las Vegas. I am modeling a 50/50 chance and through options make money above $11, as well as between 6.50 and 8.50. Outside that range I will get hurt, but at least I have a chance if the deal fails.
It's pretty clear that the "attempted" buyout was never serious. Probably a way for the Chairman and his cronies to bail-out before the fraud gets uncovered. I would not trust any financial numbers from these guys. Revenues, balance sheet, book value, etc...who knows?? They have obviously no problem screwing the american shareholders.
Most of these MLPs and high-yielders pay dividends out of CF and not EPS. By my estimation DCIX generated 28c/share in cash flow during Q2. Basically, EPS with depreciation and revenue amortization added back, both non-cash items.
This was a stupid piece of research. Totally wrong metrics for this industry.
Supply/demand balance of ships and its impact on rates is THE key driver.
I agree. Financing can fall apart at the last minute, even with SIGNED commitments. "Highly Confident" carries no value. It almost signals the opposite, which is the way the market read it.