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Technology Stocks : EZchip Semiconductor -- Ignore unavailable to you. Want to Upgrade?

To: Squeak22 who wrote (2627)

12/26/2015 4:48:29 PM

From: w0z

1 Recommendation

Recommended By
GCD1

Read Replies (1) | Respond to of 2675

Look at the price "signal" before the November vote - it also signaled a YES vote even though the vote turned out to be resoundingly NO.

I disagree. Price was signaling a NO vote because it drifted steadily downward into Nov 11, just before the vote on Nov 12. It hit a low of 23.37 on Nov 10. Low market price signaled the merger would not happen (which would have been the case based on the percentage approving existing board members...i.e. above 50% which was required for board seats but well below the 75% requirement for merger approval).

Price has been creeping up steadily since Dec 11 (when it hit 23.52) closing at a recent high of 24.82 on Thursday Dec 24. To me this indicates convergence on 25.50 and therefore approval of the merger.

I was not in favor of the merger and voted against it before selling all my shares. It may be wishful thinking to believe keeping the company independent will result in a higher price than 25.50 any time soon, and is fraught with risk (e.g new CEO, defecting R&D talent which is a scarce resource in Israel, etc). Not to mention that Price/Sales is high for a semi company at 6.81 (BTW about the same as AMBA which is in a much stronger position IMO).

Good luck to all but IMHO the market is saying the vote will pass. We'll know soon enough.

Prices

DateOpenHighLowCloseVolumeAdj Close*

Dec 24, 2015	24.67	24.85	24.64	24.82	59,500	24.82
Dec 23, 2015	24.62	24.85	24.55	24.72	228,600	24.72
Dec 22, 2015	24.60	24.74	24.44	24.60	126,200	24.60
Dec 21, 2015	24.38	24.68	24.38	24.68	88,400	24.68
Dec 18, 2015	24.55	24.80	24.53	24.53	130,100	24.53
Dec 17, 2015	24.60	24.69	24.37	24.56	130,600	24.56
Dec 16, 2015	24.36	24.73	24.05	24.52	416,200	24.52
Dec 15, 2015	24.43	24.43	24.17	24.31	126,700	24.31
Dec 14, 2015	24.11	24.41	24.11	24.37	376,600	24.37
Dec 11, 2015	23.72	24.45	23.52	24.45	258,800	24.45
Dec 10, 2015	23.95	24.08	23.86	23.93	125,500	23.93
Dec 9, 2015	24.22	24.27	23.80	23.85	301,500	23.85
Dec 8, 2015	24.22	24.38	24.12	24.31	198,100	24.31
Dec 7, 2015	24.61	24.66	24.33	24.36	350,400	24.36
Dec 4, 2015	24.60	24.80	24.60	24.78	130,400	24.78
Dec 3, 2015	24.90	24.95	24.66	24.68	213,300	24.68
Dec 2, 2015	24.95	24.95	24.80	24.91	200,700	24.91
Dec 1, 2015	24.80	25.01	24.80	24.95	142,100	24.95
Nov 30, 2015	24.82	24.92	24.78	24.86	76,300	24.86
Nov 27, 2015	24.87	24.90	24.76	24.85	74,300	24.85
Nov 25, 2015	24.89	24.93	24.76	24.87	113,900	24.87
Nov 24, 2015	24.75	24.98	24.75	24.81	226,100	24.81
Nov 23, 2015	24.85	24.97	24.75	24.80	209,200	24.80
Nov 20, 2015	24.75	25.01	24.75	24.98	226,400	24.98
Nov 19, 2015	24.70	24.89	24.56	24.85	284,100	24.85
Nov 18, 2015	24.45	24.79	24.45	24.73	210,500	24.73
Nov 17, 2015	24.05	24.67	24.05	24.62	344,800	24.62
Nov 16, 2015	24.00	24.21	23.61	24.04	570,900	24.04
Nov 13, 2015	24.36	24.37	24.01	24.14	282,300	24.14
Nov 12, 2015	24.54	24.72	24.37	24.38	872,700	24.38
Nov 11, 2015	23.52	23.93	23.49	23.93	341,800	23.93
Nov 10, 2015	23.45	23.52	23.37	23.47	350,800	23.47
Nov 9, 2015	23.76	23.79	23.50	23.53	1,032,100	23.53
Nov 6, 2015	24.08	24.20	23.93	24.00	266,000	24.00
Nov 5, 2015	24.24	24.37	24.07	24.16	253,400	24.16
Nov 4, 2015	24.38	24.41	24.23	24.27	280,800	24.27
Nov 3, 2015	24.19	24.45	24.02	24.43	271,000	24.43
Nov 2, 2015	24.25	24.50	24.22	24.25	208,300	24.25

To: Squeak22 who wrote (2627)	12/26/2015 9:32:49 PM
From: Tartuffe	3 Recommendations Recommended By longezch NapaDoc profstok Respond to of 2675

25.50 does not include the cash or the IP investment and prospects for the NPS. Until it does, I think we might get no votes despite all the duplicity. Until the valuation reflects an understandable rationale that includes all the parts of EZCH, the deal should be blocked. The merger needs to happen ASAP, and MLNX just needs to pony up and get the job done with a better offer that all the shareholders will accept. If MLNX is unwilling, they will be hurting both companies with a delay that will postpone the integration of the companies and their products. I am voting no, but will vote yes on anything north of 30. If EZCH goes down, I can ride it out like I have all the other storms for the last 14 years, and will not be forced into to taking a big tax hit. I will also bring my capital on board in the new venture if they agree to a better deal for EZCH longs, and I believe RC and other EZCH longs will do the same. If MLNX can not yield however, I am not sure I want to on board with MLNX. MLNX will need all kinds of partners and relationships to succeed, and if management can not see past the end of their nose to see how decisions affect everyone involved, it is a red flag in IMO. If they get the job done, the way this deal has happened will still have to be overlooked for trust to be built/rebuilt. If MLNX thinks investment from abroad is unnecessary, and they have access to all the capital they will need, I believe the odds are good that MLNX might manage the company in a way that does not place a premium on taking care of the shareholders, and that is the last place I want to be.