K,
As usual, your logic is off the wall. Because LSI did not go up much today does not mean the street did not take the acquisition with Symbios favorably, so stop patting yourself on the back.
Anyway the SOXX was down almost 1% where LSI was up almost 1%. In addition there was significant volume on the up move. Now typically the acquirer of a company, no matter how good the play, sees some reduction in stock value. ie T acquiring TCOMA, CPQ acquiring DEC.
This did not happen to LSI and to me is very positive NOT negative.
Now what do I think the new value of the company should be...I really do not know. If I had to guess...without the acquisition, I always felt LSI is worth a minimum of $28 a share. Now given a 50% increase in the company to a $2billion a year in sales, I would guess at least 25% more and possibly the full 50% increase. This will make LSI now worth $35 to $42 per share right now... or should I say in the September quarter.
Now of course this will screw up our contest and I will probably lose b/c of this, but I know Beachbum is a fair and honest individual and will adjust all the numbers to account in some way for the NEW LSI.<ggg>
As for you and your short positions, you will get burned badly if you don't cash them in quickly. I expect the full story by LSI will come out in the conference call, since we are in the quiet period now. I also expect all of us longs will benefit significantly.:-)
DavidG |
