By Nigam Arora & Dr. Natasha Arora
A good way to generate wealth is to buy stock of the companies that are potential buyout targets. When a company gets bought out, the buyer typically pays a significant premium. All buyouts are not created equal. Some buyouts are for cash. In other buyouts, investors get shares of the acquiring company or a combination of both.
Maxim Integrated Products (MXIM) is an analog semiconductor company that The Arora Report had identified as a potential buyout target. The stock was originally purchased at a price of $38.81. It is trading at $98.90 as of this writing generating a return of 154%.
Previously MXIM has received a buyout offer from ADI in an all-stock deal. MXIM shareholders were to receive 0.63 shares of ADI stock for each MXIM share held.
MXIM became the 157th Arora Portfolio company to be bought out.
Since then, the stock is recognizing that semiconductors are the new lifeblood of the economy. Semiconductors are in everything these days. Unlike digital semiconductors, there is less competition in analog semiconductors.
ADI just released earnings better than the consensus and the whisper numbers. ADI’s stock is rocketing. MXIM stock is following.
What To Do Now
Those not in MXIM stock may want to pay attention when a post identifies a company as a buyout target and a signal is given.
Those in MXIM stock may consider taking partial profits into the strength and continuing to hold the remaining.
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This post was just published on ZYX Buy Change Alert.
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Nigam Arora
Nigam Arora is known for his accurate stock market calls. Nigam is a distinguished master of the macro. He is a popular columnist with over 100 million page views, an engineer, and nuclear physicist by background. Nigam has founded two Inc. 500 fastest growing companies and has been involved in over 50 entrepreneurial ventures. He is the developer of Theory ZYX of Successful Change Management and is the author of the book on Theory ZYX, as well as the developer of the ZYX Change Method for Investing.
Dr. Natasha Arora
Dr. Natasha Arora has significant expertise in investment analysis especially biotech, healthcare, and technology. Natasha is a graduate of Harvard Medical School followed by a postdoc at MIT. She has published several peer reviewed research papers in top science journals.
