Cash in on Lattice Semiconductor

By Linda McDonough • November 3, 2016

Canyon Bridge Capital, a newly-formed, private equity firm, announced this morning it intends to buy Lattice Semiconductor (LSCC) for $8.30 per share in cash. We recommended purchase at $5.78 last March; it was also recommended in the old Roadrunner Stock Value Portfolio at $6.86 in February of 2015.

The stock is currently trading below the deal price so we recommend holding the stock until the deal is complete or until the stock hits $8.30. The deal is an all-cash deal and should not require regulatory review, giving us confidence the deal will close without a hitch.

Given we recommended purchase of Lattice at $5.78, at the current price today – around $7.50 – selling would give you a 30% gain. But waiting for the deal to close raises that to a 44% gain.

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Eddie G

11/03/16 ‐ 3:07pm ET November 3, 2016 at 3:07pm ET

Would you recommend a buy at $7.50?
If it goes to 8.3, that’s a 10% gain.

Linda McDonough

11/03/16 ‐ 3:23pm ET November 3, 2016 at 3:23pm ET

I think it’s a low risk way to make 10%, yes. Larger deals have been trading at a discount due to the increased regulatory scrutiny but this one doesn’t have any of those hurdles. Best, Linda

David Miller

11/22/16 ‐ 5:28pm ET November 22, 2016 at 5:28pm ET

There is a law suit pending with the Lattice per share price. They $8.3 is not enough. Will this tie up our money for a long time.

JN

11/22/16 ‐ 5:58pm ET November 22, 2016 at 5:58pm ET

David,
Most every merger attracts the ambulance chasers, usually with little effect. That said, the market seems to have baked in some reservations from the get-go- the price hasn’t jumped to a present value indicating full confidence.

black arrow

11/03/16 ‐ 3:29pm ET November 3, 2016 at 3:29pm ET

Hi Eddie G,

I was going to say 10% is good anytime you can get it!

TheSwanz

11/06/16 ‐ 11:53am ET November 6, 2016 at 11:53am ET

Got mine!!

Martha Salazar Aguilera

11/23/16 ‐ 11:03pm ET November 23, 2016 at 11:03pm ET

Hi Linda, I bought LMAT a couple weeks ago at $19.86 a share, today’s market price is $24.24, can you tell me your point of view about this stock, should I continue waiting to sell?. I appreciate very much your advice. Thanks

Linda McDonough

11/25/16 ‐ 8:36am ET November 25, 2016 at 8:36am ET

Martha,
LMAT is a stock that Jim Pearce at Systemic Wealth has been following. You can post this question to him on that site. It looks like it’s been a great stock for you but I unfortunately don’t know it at all.
Best,
Linda

Eddie G

12/08/16 ‐ 2:28pm ET December 8, 2016 at 2:28pm ET

This article says, “The stock is currently trading below the deal price so we recommend holding the stock until the deal is complete or until the stock hits $8.30.”
The Open Trades portfolio shows a SELL status.

Do you still think the deal is going to go through?

Linda McDonough

12/09/16 ‐ 11:18am ET December 9, 2016 at 11:18am ET

The deal is in precarious shape. Just yesterday twenty-two lawmakers wrote to the treasury secretary Jacob Lew to raise security concerns about this deal. This follows the U.S. blocking of a Chinese acquisition of a German semi-conductor firm due to the same concerns.
Best,
Linda

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