Stock Talk – November, 2016

Stock Talk

David Miller

David Miller

Looks like Lscc is becoming a buy . If I get in and the sale goes through do they just pay you out or can you still stay invested? If this technology is so hot and Lattice has the 60 Ghz chip why would they let this happen at this price? I had 15,000 shares and big dreams now I am out.

Yun

Yun

Linda, I want to get update on this thread please! Thanks David for the question.

Linda McDonough

Linda McDonough

Yun,
Please see my comments above.
Best,
Linda

Eddie G

Eddie G

Is it possible that the US government could prevent the buyout?
http://mobile.reuters.com/article/technologyNews/idUSKBN13N1D5

Linda McDonough

Linda McDonough

Thank you Eddie- I was just reading the same article. I suppose the government could initiate a request for more information to drag out the process or hinder the deal. If true, I think the biggest red flag is that the Chinese government is the ONLY investor in Canyon Bridge, which would certainly introduce some government questioning. I have a call into the company’s investor relations contact and will let you know if I hear back.
Best,
Linda

Linda McDonough

Linda McDonough

David,
The bid for Lattice by Canyon Bridge Capital is an all cash $8.30 per share bid. You will receive the cash so no you cannot stay invested in Lattice post acquisition. Management expects the deal to close early 2017. It looks like a good opportunity to buy the stock here. Many are worried that President Elect Trump will discourage Asian investment in U.S. companies but this is an all domestic deal. I do believe Lattice has some good technology but as always there is competition in the space which may be why management is accepting of the deal. Often times a company would prefer operating as a private company as well so there are many reasons why it agrees to being acquired.
Best,
Linda

CTFlyr

Christopher Thomas

Hi Linda……with regret I’m watching PLAY go up in price after my put purchase. Do you really still expect a plunge in the share price…..+10%…..after Dec 1 ?

Linda McDonough

Linda McDonough

Hi Christopher,
Dave and Busters (PLAY) just announced that earnings will be reported on Tuesday December 6 after the market close. I do expect there to be disappointing news in the release. According to my work, estimates do not take into account the one time boost the company got from rolling out electronic game cards. Picking entry spots on options is difficult. I choose further out expiration dates to help cushion the impact if I am not immediately correct. This particular option trade is tied to the December 6 news event.
Best,
Linda

cj

cj

Why don’t I see Lscc in the open or closed portfolio. Am I missing something?

Linda McDonough

Linda McDonough

Hi CJ-
LSCC was sold from the Growth Stock Strategist portfolio when the Canyon Bridge acquisition was announced on November 3. I will check on why it is not listed in the closed out portion of the portfolio page.
Best,
Linda

Aaron Cavender

Aaron Cavender

Linda,

You did recommend holding LSCC with the expectation that the sale will not fall through and the stock price will converse to the offer. Is that still valid? If something compromises that, then will you be able to send out an alert? I am checking the news occasionally, but I don’t know if I have the chops to know if the pending offer is at risk.

-Aaron

Linda McDonough

Linda McDonough

Aaron,
I officially sold the stock but suggested subscribers who wanted to could hold the stock until the acquisition closed. When the purchase was announced there was no indication that the buyer was linked to the Chinese government. With this new information, it is less likely that the deal will close in the first quarter as originally expected.
Best,
Linda

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