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Mindspeed Technologies Inc. is a Fabless Semiconductor Company

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Mindspeed Technolgies is a fabless semiconductor company that is likely to be acquired in the near term at a substantial premium.  The company has three product segments; communication convergence processors, high-performance analog, and wireless infrastructure.

On April 30th, Mindspeed Technologies announced that they had hired Morgan Stanley to evaluate strategic alternatives.  Mindspeed Technologies is a leading global provider of network infrastructure semiconductor solutions.  They could be very valuable to a big name player.
For acquisition purposes and considering this is in an industry with a high growth outlook, I looked at Mindspeed in comparison to its peers based on Price/Sales and EV/Sales (all numbers in millions).


Based on its peers the average Price/Sales Multiple is 3.19 and the average EV/Sales multiple is 3.38. 
These multiples applied to MSPD would mean a Market Price of $450 million (north of $10/share) or an Enterprise Value of $477 million ( minus $74 million of…

Ambase Corporation Follow Up

I got out of Ambase Corp, OTC:ABCP, after the shareholders meeting announcement that they wouldn't liquidate.  However, now that the stock has dropped 24% since then im intrigued.

This sell off is because of an announced venture mentioned....

Here : http://www.sec.gov/Archives/edgar/data/20639/000002063913000047/frm8kentry111w57.htm

In the disclosure it mentions they will participate  in the "real estate development project to purchase, develop, and operate the real property located at 105 through 111 West 57th Street in  New York, New York".  

It must be related to this: 

http://ny.curbed.com/archives/2013/03/29/jds_developments_skinny_57th_street_tower_to_grow_taller.php

They just purchased a portion of this project in New York for 56 million, and the market cap of the company is 36.80 M.  The question is, did they overpay? and how much of this project are they getting?

Here's the article that mentions that the Steinway Building was purchased back in March by JDS for 4…

Siemen's Spins Off Osram

Siemen's is spinning off their lighting division, Osram, on July 5th, with the new Osram shares trading on the Frankfurt and Munich Stock Exchange and Siemen's trading ex-spin off, July 8th.

Osram will be the largest pure play lighting company in the world.

For every 10 shares of Siemen's owned, 1 share of Osram will be received.

Siemen's shareholders will end up owning 80.5% of Osram, while Siemen's will continue to own the remaining 19.5%

Holders of Siemen's ADR will not receive shares in the new company. Rather these shares will be sold immediately, and the proceeds will go to the ADR holders.

The press has created a negative aura for Osram, and there is an anticipation that once shares begin to trade, they will dive.  Reasons include forced selling of the ADRs, forced institutional selling,  as well as more of the customary negative spin off rhetoric.

It is also expected that the ex spin-off Siemen's will jump, because of the institutional buyers who d…

AmBase Corporation (OTC:ABCP)

AmBase Corporation (OTC:ABCP) is another interesting situation.  After 22 years the company received a settlement from the government of $180 million.

A proxy statement for its annual shareholder meeting that takes place tomorrow, June 6th, states that included in the objectives to consider and act on for the meeting is "A shareholder proposal, if properly presented at the 2013 Annual Meeting, recommending the liquidation of the Company."

A catalyst like this will raise the price for the stock, since it is trading below its cash on its books.

Will this liquidation be announced soon?

An outside investor can't say for sure, however it's possible that because they distributed a $2 dividend after the settlement was announced, they have no other intentions for the awarded cash. If they were to start up other operations of some sort, they would have kept that dividend.

While a liquidation may not be in their intentions at all, the opportunity has limited downside, and a…

Otelco Inc. Emerges from Pre pack Chp 11

Otelco Inc. is an Rural Local Exchange Carrier (RLEC) that recently emerged from bankruptcy.  Their current symbol is NASDAQ:OTEL.

While the company was in bankruptcy, the company's IDSs were still trading on the Nasdaq and Toronto exchange under the symbols OTT and OTT.UN respectively.  They entered Chp. 11 with a pre pack.  Under this plan, the IDSs got exchanged into 85.2 % of the total equity.  Good play for people that saw them go from 1.60 to north of 2.50.

Potentially the equity value could be called 42.5 million (using an EV/EBITDA multiple of 4).  

Looking up OTEL's closing price of 11.00, with 2.87 million shares outstanding the market cap is 37.93 million. You might think, wait that math's not right. On the contrary, OTEL only represents the class A shares worth 92.5% of the total equity or 31.57 million.

The class A shares have not been diluted by the class B shares conversion, nor the Management Equity Plan.  The class B shares can be converted into 232,780 cla…