SMSC Standard Microsystems Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : SMSC Standard Microsystems

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: N. Voloshin who wrote (56)	11/13/1996 12:15:00 PM
From: Ali Angha	of 335

Last year, management looked into ways to boost shareholder value. These were some of their findings and ideas given to them by investment bankers: 1-SMC's valuation suffers from lack of technical analyst follow up and focus since it is very difficult for one analyst to be gurus in both Semiconductor and Networking industries. Therefore, SMC never gets its fair share of recommendations since the analysts are not sure about the other portion of the business that is not in their domain. 2-Any down trend in either industry will hold the stock back. 3-One idea was to spin-off the businesses as wholly owned companies with SMC as the holding company. 4-Another idea was to sell one the businesses (most probably Network/Systems Division). Personally, I like senario #3 where the Network/Systems Division is spun-off and SMC issues stocks for that business to its current shareholders or holds equity of less than 50% and puts the rest on the street as IPO. There has always been pressure on SMC management to boost shareholders' value. Now, the pressure is greater than ever. Good Luck to all.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next