| To: The Ox who wrote (1135) | 10/1/2012 12:21:57 PM | | From: The Ox | | | | Cypress Finally Acquires Ramtron
Cypress Semiconductor Corporation ( CY) recently announced that it has finally reached an agreement to buy Ramtron International Corp. ( RMTR) for $3.10 per share in cash. The deal is expected to close by the end of the calendar year.
This was Cypress’ fourth attempt in more than one year to take over its peer Ramtron International. The deal represents a premium of 71% to Ramtron’s closing price of $1.81 per share on June 11. The offer translates into a purchase price of about $109.8 million.
The first public offer of $2.48 per share was made in June, which was rejected stating that it was inadequate and not in the best interest of Ramtron’s shareholders.
Ramtron International is a fabless semiconductor company with about 34.0 million shares outstanding. It supplies ferroelectric random access memories and has Texas Instruments Inc. ( TXN) and Toshiba Corp. as manufacturing partners. In the second quarter of 2012, Ramtron reported revenue of $14.2 million with a net profit of $69,000.
We believe the deal makes sense for Cypress for a number of reasons. First, Ramtron is a fabless company and would fit very well into Cypress’ low capex manufacturing strategy. Being a fabless company, Ramtron relies on partners for manufacturing, assembly and testing of products that offer superior technology and services at competitive prices.
Second, Ramtron’s ferroelectric-RAM (F-RAM) will likely supplement Cypress’ Memory Products Division, which includes Asynchronous SRAMs, Synchronous SRAMs and nvSRAMs, and provide a longer-term roadmap for its non-volatile memory market. Ramtron’s F-RAM enables read-writes with very little delay, low power consumption, and high endurance with limited memory loss.
The F-RAM is also competitive with some of the newer technologies such as Phase-change-RAM. The Memory Products Division segment generated 41% of revenue in the second quarter and was up 1.3% sequentially. The sequential increase came on the back of strong demand in the static random access memory (:SRAM) business.
The impact of the deal on Cypress’ financials is unknown but it will definitely bring synergies on the sales side.
Cypress is a semiconductor company offering high-performance, mixed signal, programmable solutions. In the second quarter, Cypress reported earnings of 5 cents, beating the Zacks Consensus Estimate of 3 cents. Higher touch sales, improved gross margins and tight operating expense control contributed to the upside in earnings.
Cypressoperates in a highly competitive market. In the touchscreen market, the company competes with Atmel Corporation ( ATML) and Synaptics ( SYNA).
Currently, Cypress has a Zacks #3 Rank, implying a short-term Hold rating. |
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| To: The Ox who wrote (1144) | 10/2/2012 9:08:39 AM | | From: The Ox | | | | INVE
Note- bought a few thousand shares almost a month ago for my folks IRA and then sold all but 300 due to the quick gains. Took out the original principle and left them the "free" shares, playing it very safe since this is such a small company. Chart looking very good from a reversal watch perspective.....
finviz.com
Yesterday's news
SANTA ANA, Calif. and ISMANING, Germany, Oct. 1, 2012 (GLOBE NEWSWIRE) -- Identive Group, Inc. ( INVE) ( INV.F), a provider of products and services for the identification, security and RFID industries, today announced that it has received new customer orders for more than 20 million radio frequency identification (RFID) transponder products, including over 15 million near field communication (NFC) transponders. The orders represent large contracts with customers in the US, Europe and Asia and are due for delivery over the next six months.
"We are very pleased with the uptick in volume of our transponder orders, which represents a 33% increase over our average quarterly production for 2012 to date. Having these orders already in place for Q4 and Q1 points to a recovery in demand for our transponder products in general and a strong increase in demand for innovative NFC applications," said Dr. Manfred Mueller, executive vice president and COO Identification Products for Identive. Mueller continued, "As previously announced, we are bringing additional production capacity on line in our Singapore plant during Q4, which we expect will accommodate this growing demand." |
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| To: The Ox who wrote (1146) | 10/2/2012 9:43:38 AM | | From: The Ox | | | | RSH plunging to new lows. Goes on reversal watch. Looks like the classic value trap but getting rid of their "lame-brain" CEO was a very good first step. Question is, can they ever turn this around? Doesn't matter. Don't touch it until the chart says "its turned".
finviz.com
EDIT - they should also change their name. Radio is soooo last century <vbg>.... |
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| To: The Ox who wrote (1102) | 10/2/2012 9:57:33 AM | | From: The Ox | | | | WFR back into attractive range. Currently a falling knife but this looks more like sellers who bought too high with the recent run. Very curious to see their next earnings report. Like more reversal watches.....wait for the turn!!
finviz.com |
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| To: lindalib who wrote (1149) | 10/2/2012 3:04:28 PM | | From: The Ox | | | | | Yes, it looks like they are getting some traction. Revs going in the right direction. Now they must show the improvements on the bottom line. Will continue to track them and watch their progress (or lack thereof). |
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| To: The Ox who wrote (1147) | 10/2/2012 3:15:30 PM | | From: The Ox | | | | RSH - my comment --under perform<giggle, that's another 50% down from here!!>
(snip)
Reiterate our UNDERPERFORM rating and $1.00 12-month price target. We continue to expect growing losses from declining CE sales, and continued margin erosion, compounded by an ill-advised strategy to invest in growth. Our price target reflects our best guess at the brand equity and going-concern value for the business (around $300 million), net of the company’s net debt.
Risks to attainment of our share price target include changes to the macroeconomic outlook, variability in new product release timing, the company’s ability to maintain its dividend should earnings continue to decline, the effects of competition from other consumer electronic and big-box retailers and changes in consumer demand for consumer electronics.
Michael Pachter is an analyst at Wedbush Securities |
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