Let's assume for a minute that QCOM increases the bid. My question, is there any incentive to do that before the EU completes their investigation?
so if QCOM stays at $110 then waiting makes no sense at todays value. If one has tendered already, how do you get out of it? Are we locked in ?
I am still not 100% sure what the purpose of the tender is. Someone mentioned before that the deal is done regardless of the result of the tender, but today's article seems to hint that qcom needs to get the tender requirement fulfilled if they want to get the deal done. Which one is it?
X axis : Stocks Price Correlation Coefficient Y axis : Quantity of stocks May-2016 1,000 Day Parameter 2,830 NASDAQ Stocks Price Analysis This stock mode of correlation coefficient is 0.9 In other words, the correlation coefficient of the other stock
The EU says they are going to investigate the QCOM-NXPI deal....how long will this take...3 months or more??
NXPI is fully valued at $110, just ask any M/A experts. It looks like most of people making noise are amateur financial bloggers. All of them overlooked two very important facts :
1. Comparing NXPI to other semi-conductor companies is simply wrong. Most other semi-conductor companies referred to by the bloggers have no debts or low debt, while NXPI has $9 billion in debt, or about $26 per NXPI share. Qualcomm is paying off the debt. Including the debt payment, qualcomm is paying $136 ($110 + $26) per NXPI share. This is the reason the majority of NXPI shareholders voted in January to approve the deal. They knew it's a good deal for them. 2. NXPI has large exposure (~40%) in the highly cyclical automobile business, therefore, the P/E ratio needs to be adjusted accordingly. Most auto related companies have P/E in the single digit or low teens, even at the peak of an auto-cycle. Remember, we are now at the peak of an auto cycle.
The smart money(institution investors) understands this is a good deal and will go along with the deal by tendering their shares once all the regulatory approvals have been obtained, Those refusing to tender will be left behind and their shares will be forced tendered and subjected to 15% dutch tax.
How do you play this ? I am selling a bunch of NXPI Jan 2019 call option with strike of $110. The premium on these options have rocketed last week due to rumors of Qualcomm making higher NXPI bids, Not gonna happen, and it will be my money in the bank.
Can it go over the $110 price and if not when do you think/know when this deal will get over with and we receive the $110 per share....???????????
I'm watching the mkt now...NXPI is $109.30...so what's the benefit of holding to get only $110 in several months vs. $109.30...if anybody knows. One person said the price cannot go over $110...others seem to indicate it can...I don't know which one is right... I would say that QCOM may raise the price to a higher number $115...only to get most shares tendered....does this sound correct. I'm no expert by any means....just curious.....
So here's my take. Even if it goes over $110, you have to ask yourself how long are you willing to hold out for these minimal gains, while you're missing out on gains by investing elsewhere. I sold half my position on 3/8 and the rest on 3/21 for a net gain of 11.3%. I reinvested in MU, DAL, TSO. I'm up 27.7% now.
options seem to be implying the offer will be raised to 115, and as has been suggested in the media it probably worth more then that on its own. So bit of a no brainer here, i would stay long.
sold at 109.50 yesterday. I am now a sideline spectators until another opportunity presents itself.
Elliot MGMT is demanding QCOM pay more! We did it baby!
Old saying-Pigs get fed, Hogs get slaughtered......price may go down if QCOM drops out.
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NXPI reached a new 52 Week High at 109.40
Untendered my shares yesterday, someone will pay more for their exploding rechnology
What are the impacts if EU extends the investigations for 4 months?
qcom would never raise the offer unless they are forced to. So the question is what leverage does the stockholder have to make qcom pay more? I thought it is a done deal and majority of nxpi stockholders already approved?
Institutions and mutual funds bidding up the price to force QCOM to ante up more?
ONE MONTH chart shows a steady climb, quickly approaching $110 PPS And we are pressing toward yet another 52-week high on strong volume -
So, don't give up your seats just yet or sell your tickets - stay on board and enjoy the ride - -
Well, I decided to sell my position in NXPI this morning (900 shares @ $107.75) to take advantage of other opportunities over the next few days as the market pulls back a little. This stock was good to me over the last year, but I didn't want to wait until December to get my $110, and who knows what will ultimately happen with this deal. Heck, it might even get a higher bid, that would be unfortunate for me. :)
Anyway, I am seriously thinking about putting some of these funds (almost $100k) into QCOM, it seems undervalued and it offers a dividend of 4% annually, which comes close to what I would have made had I held NXPI alone! I think QCOM will appreciate into the $60s, and perhaps higher, before the year is over, making this move a no brainer.
Good luck to all, I will check in from time to time to discuss, or perhaps take my lumps...