Posted on 04/05/2011 8:16:13 AM PDT by blam
Citi Upgrades National Semiconductor From Sell Hours After Texas Instruments Buys It
Gregory White
Apr. 5, 2011, 10:55 AM
This morning, Citi upgraded National Semiconductor from sell to hold hours after the company was acquired by Texas Instruments.
The note, from Citi:
TXN announced it will acquire NSM for $25 per share in cash after the market's close Monday; NSM ticked up 73% to $24.30 in after market trading. TXN plans to finance the $6.5B transaction with existing cash and debt. The deal is expected to close in six to nine months pending approval from regulators and NSM share holders. We see little risk of regulatory approval and would expect NSM share holders to readily tender shares given NSM's recent growth and execution challenges. We raise NSM's target price to $25 and upgrade NSM to Hold (2S) from Sell (3S).
Citi's $25 price target on National Semiconductor is a little higher than where it stands right now, at 24.10.
(Excerpt) Read more at businessinsider.com ...
Citicorp = scum company.
The markets are a changing!!!
With ASICS becomming the norm, FPGA and PALS containing most of the glue logic on many boards, the need for ‘popcorn’ logic parts like what these companies are making is going away far faster than I would have imagined.
I don’t see this industry doing anything but continuing to shrink to niche’ status over the next decade.
Who’da thunk?
I was employed by the original Fairchild in the late 60s and early 70s before they were sold to Schlumberger and then National. That plant is still in Maine and TI has said that jobs in Maine will not be affected but I’d bet that the facility will suffer the same fate as the Unitrode facility in NH after it was acquired by TI.
After many years of interest in the market, reguarding Citi’s buy/sell recomendations, they are either much less competent than the advise of the average 3 year old, or they are deliberately misleading and acting against the interests of the morons who pay them for their opinions.
Why would we need a manufacturing facility in Maine? We have enough manufacturing capacity. And we’re going to produce our products with the same manufacturing processes to give the same quality to the customers, not mix and matxh between TI’s and National’s processes.
And the Unitrode design facility is still here, just renamed TI design facility. The manufacturing facility performance was very poor, hence it got chopped. You would do the same thing if you were CEO/board member. They were given a chance to bring up their performance and couldn’t do it. Same thing happened with the Burr Brown facility in Tucson.
Posting while ignorant.
That being said, when you pay for info, you may hope the information takes into account any company that may want what you have. The "industry analysts" should have a clue about what would be good or bad for a company and be on the lookout for deals. Just as NAT went up from the sale, almost every other wallflower company in chips went up on the hopes of a similar deal. How stupid is that? Now will CITI upgrade them on the hopes they will be the next candidate? Buying on the hopes of a take out is almost always folly. Citi would be foolish to recommend a stock because NAT was bought and there could be another deal in the works. Almost never happens. There may be more deals now that the competition has made one, but who, and why? No way to know unless you just want to roll the dice. I would hope Citi doesn't roll dice.
SCUSE me, NAT=NSM. Wasn’t paying attention.
Where am I wrong, oh Enlightened One?
Are FPGAs and ASICS not becoming the norm? Is there a huge demand for ‘popcorn’ logic? Are you seeing a huge demand on the generic IC’s that TI and Nat. Semi are famos for?
Oh, please elighten, oh smug and flaming troll
Not at all disagreeing with the Unitrode decision. I had visited the Unitrode manufacturing facility before the acquisition and, yes, it was hardly world-class.
The comment was really that, regardless of what TI says today about the Maine facility, there’s probably no business logic to keeping it.
The press will undoubtedly blame a closure somehow on the new pro-business Republican governor: “Governor LePage fails to keep jobs in Maine.”
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