Why Supertex, Inc. Shares Skyrocketed
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our thesis.
What: Shares of Supertex, jumped more than 35% Monday after Microchip Technology announced it has agreed to acquire the semiconductor manufacturer for $33 per share.
So what: The deal values Supertex at approximately $394 million, including cash and investments on its balance sheet of approximately $148 million. What's more, the acquisition is expected to close sometime in the second quarter, and should be accretive to Microchip's adjusted earnings per share in Q3.
Now what: Keep in mind while the acquisition has already been given the go-ahead by both companies' boards of directors, it's not a done deal as it still requires the approval of Supertex's shareholders. A number of law firms have also stepped out to suggest the deal may not be in Supertex investors' best interest. With Supertex stock currently trading just pennies below the acquisition price, I think shareholders would be wise to take profits after today's pop.
Consider the 9 incredible high-yielding stocks in this free report
So where should you put those profits to work? Well, one of the dirty secrets that few finance professionals will openly admit is the fact that dividend stocks as a group handily outperform their non-dividend-paying brethren. The reasons for this are too numerous to list here, but you can rest assured that it's true. However, knowing this is only half the battle. The other half is identifying which dividend stocks in particular are the best. With this in mind, our top analysts put together a free list of nine high-yielding stocks that should be in every income investor's portfolio. To learn the identity of these stocks instantly and for free, all you have to do is click here now.
The article Why Supertex, Inc. Shares Skyrocketed originally appeared on Fool.com.
Steve Symington has no position in any stocks mentioned, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.