I'm curious, do you think KYO qualifies as a second tier?
Yes. However I believe that QCOM management sees that KYO would be the best company to buy the handset division. First of all, penetration into the Asian market, Japan, China, etc and secondly, by retaining the QCP as a subsidiary even though the work is entirely for KYO, QCOM has the influence how the phones are made.
We will see what the analysts will say tomorrow. In restopect, JP Morgan upm the target price to 570, even before the handset announcement. That shows a twofold possibilities:
a. There was a leak to JP Morgan about KYO, and that let the analyst believe it is a positive step
b. There was no leak: the analyst had a full faith in Dr. Irwin Jacobs, and the new target price was issued regardless who the buyer would be.
Let us see tomorrow which analyst will make a fool of himself/herself. QCOM had several bidders for the handset and chosing KYO must be the best course. Hence if an analyst gives a negative spin, who is he/she to know more than QCOM management. The company is in the hands of highly intellectual and bright people.
I am not selling my shares. As a matter of fact, I shorted more puts.
Best regards
Paul |
