<<It's even been suggested that DIOD could be taken over by VSH! Anyone else hear this? >>
Not only have I not heard such a rumor, there is no chance, IMO, that it is accurate. VSH just sold its indirect interest in DIOD by selling its joint venture interest in Lite-On which owned roughly 40% of DIOD. At the same time, the CEO of DIOD, who was a VSH man, stepped down and we got the current CEO. The interest that it had was dilutive to earnings and the sale is accretive by around $0.08 to $0.10 per share, pre split, as I recall.
DIOD brings nothing significant to the table that VSH does not already have in SILI. Plus, DIOD, like most others in this sector, is capacity constrained. It is producing everything it has capacity for and has already sold out its newly planned capacity through at least the end of this year. VSH sold its interest, in its words, "to concentrate on SILI." It makes no sense for it to buy it back.
On the other hand, I would not be surprised to see VSH make additional acquisitions to continue to broaden its product line -- this is the strategy it has employed for the last several years and the strategy it appears to continue to be employing.
I, too, am long VSH and picked up more at $26 and change and $29 and change in the last month. The run has been nice, but there is still a ways to go to get back to the 52 week high.
Troy |
