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Technology Stocks : Silicon Motion Inc. (SIMO)
SIMO 67.33-0.9%3:34 PM EDT

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To: Elroy who wrote (2575)7/20/2022 6:02:59 PM
From: Rarebird  Read Replies (1) of 2593
 
I was aware of the deal with MXL and that's why I put SIMO in my IRA so I don't have to pay capital gains on the cash portion of the take over.

In semi land, I bought TXN a few days ago.

Message 33921931

I think most retail investors are selling SIMO because they are afraid of China nixing the deal. But I don't see a national security issue involved in the merger.

The other issue is whether MXL will get the financing needed to acquire SIMO. Sure, they are going to use SIMO's cash to help finance the deal, but that won't be nearly enough.

What I haven't heard is the interest rate that MXL got to acquire SIMO. That is important as the Fed is raising rates. Does MXL already have a rate locked in?

MXL has a decent balance sheet and I don't think they will have a problem securing a loan.

The only question in my mind is how committed is MXL to acquiring SIMO?
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