A follow-up. Major stockholder TRW isn't doing too well:
>>7:19AM TRW downgraded by DBAB, Solly (TRW) 41.75: DB Alex. Brown downgrades to MKT PERFORM from Buy and lowers price target to $42 from $50; firm says they have reduced confidence that the co can meet its cost-cutting targets while looking for a new CEO, which the co says could take 4-6 months. Separately, Salomon Smith Barney downgrades TRW to NEUTRAL from Buy.<<
So it wouldn't surprise me if TRW's selling of its RFMD holdings keeps going. I, too, am looking for a pop on which to re-hedge the unhedged half of my position for a couple of months. I like what RFMD is doing, but recovery could take longer than I at first thought.
TRW became a holder of less than 5% in November. My rough calculations show that it has about 6 million shares left to sell. 4 million shares are pledged as collateral under agreements with Goldman Sachs, so maybe the selling will stop soon. It has filed 144s for roughly 2 million since filing its last Form 13 that showed it has 8 million shares to sell. So that means it has about 2 million remaining that it controls by itself (unless they've sold that since their last 144; it is likely that some of that remaining 2 million has already been sold).
I've got to find the agreement with GS which locks up the remaining 4 million; so far, no soap. If it turns out to be a long term obligation tied to a debt issue by TRW, or something like that, TRW could be stuck with those shares for some time, and RFMD would see the pressure ease.
I'll post when I get it figured out.
Cheers, Tuck |
