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

To: NapaDoc who wrote (2649)	1/4/2016 1:17:59 PM
From: DarthS	3 Recommendations Recommended By EzStinger Jim Mullens waitwatchwander Read Replies (1) \| Respond to of 2675

'And to Paul A., why should the focus be "after the vote" when there may be 25 % or more of shareholders who think this is a horrible deal, that the go-shop was a sham, and that this is in all probability a deal between friends that the legal community would likely have a field day with if these were US companies.' Napa Doc from your quote above And you think that only US companies are immune to deals between friends, well I think NOT because the Company BLT (Blount International) was just bought out at $10/share after languishing around the 5.50 - 7.00 area. The CEO of Blount and the CEO of the Private Firm are best of buddies from days of old and my friend who works there along with others who have a boatload of options all above the buyout price have been well and truly 'schlonged' to put it in 'Donald Trump' terms. I am voting yes with my measly 7K shares which I bought around the $15 area because; 1. Eli is tired and wants out, if he stays on, will he have the enthusiasm to see out your long term potential. 2. What is hot today may not be tomorrow 3. And yes you may be right about this being a show me stock 4. There is a price gap around $22 and $17 which will be re visited sometime in the future if EZCH remains independent

To: NapaDoc who wrote (2649)	1/5/2016 11:42:39 AM
From: Jim Mullens	4 Recommendations Recommended By FJB PaulAquino Tbill89 The Ox Read Replies (2) \| Respond to of 2675

Napadoc / Squeak 22, re: EZCH vote........................... 1 ) “ ...why should the focus be "after the vote"...” Those that are EZCH shareholders after a no vote, will most likely be immediately impacted by the market reaction .... most likely a significant share price decline (as other have pointed out), “... it would be difficult for EZCH to go it alone because of the dynamics that have played out since the offer....” I recently took a look at EZCH’s put option open interest (Yahoo) at strike prices from $20 to $25. They total about 16,000 contracts which represents about 1.6 million shares (@ 100 shares/contract). I’m no options expert, but it appears that only 5% of EZCH’s shares outstanding (30.1 million) are “protected”. If I’m looking at this correctly, it appears that many may be hurt if a no vote results in a significant price decline. >>>>>>>>>>>>>>>>>> 1.6 million shares / 30.1million shares outstanding= 5% ~16,000 Jan 15, 2016 open interest put contracts @ 100 sh/ contract = 1.6 million shares. 2) “... *If the No vote carries again in January, then earnings estimates for MNLX will drop because the EZCH acquisition is accretive to MLNX earnings*....” Best I can tell using Yahoo “EPS trends” data, the MLNX FY16 EPS has only increased by 20 cents in the past three months ( $3.00 from $2.80), and that could have been based on its positive preannouncement on Oct 1, 2015. Given the above, it does not appear to me that EZCH’s acquisition has been priced into analyst estimates. Credit Suisse has maintained their July 23 $50 target ( July 15 price at $46.98) even after the EZCH acquisition announcement, despite stating that their “analysis suggests the deal could be 25- 30% accretive to CY16 EPS..” Given that MLNX is currently trading (~$41) less that than it was last July (~$47), with a reasonable below market PE (~15) and a 0.46 PEG vs the S&P 500’s of 1.80, it does not appear to me that MLNX’s share price currently reflects any benefit from the potential EZCH acquisition. It may decline however with a no vote, but based on the above that may only be a temporary market reaction.