Looks like the end of the line for this amazing tech play…
http://www.investegate.co.uk/arm-holdings-plc–arm-/rns/reco…
It’s a shame as this was a low risk high return investment with forward visibility of earnings and an incredible track record. It was also one of the safest bets on IOT given the breadth of the userbase.
Ant
Ant,
Sort of too bad, so sad. But I’ll take the opportunity to thank you for bringing ARMH back to this board awhile ago. I did take a position on June 13 because of your post(s). I’m sitting here up 68% right now. That tends to wash away the pain, two Saul years of gains in one month.
Thanks
KC
It is a nice gain, but I would have been happy to keep it for a long time. I’m up 1000% and 2500% in my oldest lots from 2003. Been very, very good to me.
It’s the end of the line for me but SoftBank is getting a great deal if they know how to manage it (I have my doubts). I don’t think Japanese and ARM management cultures are compatible.
Denny Schlesinger
So true Denny.
One has to wonder, were it not for the Brexit, would we be seeing this right now? When the new Prime Minister speaks in support of the ARM deal as an indication of the strength of Britain economy, this speaks of some political expediency IMO.
In 2013, ARM had a PE of over 100!!
Yet they sell at PE of 68…should be at least 50% higher offer IMO.
Sure smacks of Brexit political expediency…not necessarily the best business decision.
Brexit made it possible and timely. Now was the time. 68 or is not a bad buy out at all. Particularly, as Denny specifiare, the cultures are probably incompatible but nevertheless it still is a gorilla in its prime. So tough to lose such an investment vehicle.
I say look at Twilio.
Tinker
Sure smacks of Brexit political expediency…not necessarily the best business decision.
Duma:
Brexit is part of it by driving the GBP down while the Yen is rising giving Softbank a terrific opportunity to pick up a great asset. Also, since the UK will need trading partners they can’t very well start by blocking foreign buyers.
But it’s also the result of central banks taking over the economy with unproven methods that could lead to catastrophe. With negative interest rates buying productive assets becomes an imperative as cash* transforms from an asset to a liability. With low rates investors had to reach for yield but with NIRP they have to run for protection from confiscation.
I’m buying shares with the cash flow from options.
Denny Schlesinger
Yep a desperate Government negotiating position, together with the 15% crash in the GBP coupled with the strengthened Yen means that Softbank are getting an easy ride on the back of Brexit. UK could become vulture fund territory where predators go bargain hunting.
Ant
how about an offer by Intel? Regulator problems?
KC
Intel would probably would be an issue for the regulators - although Intel could say they will commit to discontinuing or sell of Quark or Atom.
I’m actually coming round to the idea of buying into Softbank.
Separately - one of the last remaining pure IP licensing companies, CEVA which I raised on this board a while back, is now breaking out on this news - it was teetering at the edge of an all time high and has now cleared it.
Ant
I’m actually coming round to the idea of buying into Softbank.
Ant
Check out the debt on their balance sheet, it might change your mind.
ARM is best positioned as an independent technology company, not as a cog in an empire run by an empire building megalomaniac. I can just see ARM being spun off to help Softbank pay off their debt before becoming insolvent. ARM does not need Softbank or anyone else.
Reality being what it is, I’m getting ready to reinvest the cash I’ll get from the deal, if it goes through, which is the most likely scenario.
Denny Schlesinger