- SIMO grew sales and profits by double digits in Q1, but that was not the reason why the stock has soared higher, outperforming most.
- MXL intends to acquire SIMO, but longs should expect difficulties in getting the deal through for a couple of reasons.
- If the deal does not go through, the stock is likely to get punished due to current market conditions, especially with end-use demand going down.
- The deal may or may not go through as proposed, but it is still worth holding on to SIMO, provided one can stomach short-term setbacks.
For further details see:
Silicon Motion And MaxLinear: Deal Not Done As Hurdles Remain In The Way