) (DLGS.XE) has done a little better since my last update
on the company, as the market has reacted positively to a favorable
second quarter pre-announcement, and now, the announcement that it has
terminated merger discussions with Synaptics (SYNA).
Overpaying for Synaptics wasn’t going to help Dialog, but Dialog does
still need a lot of self-help. The company is looking at a steep
downward turn in power management integrated circuit (or PMIC) revenue
from Apple (AAPL),
and the company is a long way from solid traction in markets outside
mobile (and/or with customers other than Apple). Although the shares no
longer trade at a discount to zero value in the mobile business, there
could still be upside if Dialog can grow its rapid charging,
connectivity, and auto/industrial businesses and/or find a new M&A
dance partner.
Continue here:
Dialog Semiconductor Gets Rewarded For Walking Away From Synaptics
No comments:
Post a Comment