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Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: robert b furman who wrote (25564)	8/14/2025 10:32:30 AM
From: Elroy	Read Replies (2) \| Respond to of 26515

COHR has been trying to roll up the sector via acquisition. That's been a great long term winning strategy for many component makers. I like that. So that's how they got all that debt? I wonder why in an acquisition the buyer's stock isn't used instead of cash? I guess the seller can have confidence in cash (it's cash!), but you never know if the buyer's stock is going to implode before the deal goes through, something like that. SIMO was supossed to be acquired by MXL in a mostly cash deal (it collapsed), but the bummer about that was the transaction was taxable. In an all stock deal I think the selling shareholder gets the buyer's stock, and there may be no taxation until he sells the buyer's stock if structured properly. That's appealing. And it prevents the big debt build up, which can cause interest expense to eat up lots of future profits.