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Technology Stocks : Silicon Motion Inc. (SIMO) -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (2587)	9/20/2022 12:40:39 PM
From: Elroy	Read Replies (1) \| Respond to of 2978

The deal awaits Chinese regulatory approval, which is expected to be received some time in summer 2023. There is unlikely to be any deal news until then. There is a huge discount between the SIMO current share price and the SIMO value if the deal goes through. Today SIMO is $70 while the deal value ($93.54 cash + MXL stock) is about $105. This indicates a significant share of investors think China will (for some reason) reject the deal. All we can do is wait. Since SIMO has not updated guidance since January 2022 it's hard to tell how the decline in the consumer semi space is affecting their business. I am sure it is hurting their business, but by how much is anyone's guess. The good thing is if the deal collapses and it gets announced next summer, by then it seems reasonably likely that the semis will be out of their funk and on the way higher, so SIMO on it's own may be worth $70 regardless of the deal. However, without any forward guidance it's pretty hard to vaule SIMO.