Another Cash Play Gets Taken Out
Three of the four cash plays in the semiconductor industry I wrote about in November have been subject to buyouts by competitors in 2009. SiRF Technologies (ticker SIRF) and Avanex (AVNX) both catched a bid earlier this year. And last week, Tundra Semiconductor also agreed to be bought.
Gennum Corp (GND.TO) is
buying intellectual property firm Tundra Semiconductor (TUN.TO)
in a cash and stock deal worth C$86 million ($69.4 million),
the companies announced late on Thursday.
The deal values Tundra at C$4.43 a share. Tundra's shares closed at C$3.07 on the Toronto Stock Exchange on Thursday.
The other stock of the four was O2Micro (OIIM).
Returns since November 12 for each stock have been
AVNX -5.0%
OIIM 53.7%
SIRF 83.2%
TUN (C$) 41.3%
Average return 43.3%
The average return far outpaces the return of the broad market or the semiconductor index.
That is what buying stocks at or below net cash can do.
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