In premarket in US
10 replies (most recent on top)
I think they should just pay off the debt
Buyback is one of the worst uses of free capital in Tech Stocks. In stable sectors it makes sense. It doesn't change the fundamentals so the capital is quickly lost. That NXP and QCom are talking about buybacks tells how lost they are. Selling off businesses and Layoffs does something but the danger is killing the company. NXP needs to be sold but it will be cheap.
NXP stock was 85$ before Qualcomm acquisition announced in November 2016. The current stock price is heavily driven by the expectation of takeover. Thus it is normal that price can go back to 90$. However investor expectations are 120$ for NXP (since 2016, without Q). The company can do everything to meet their expectations:
sell of business
News reports in recent days are saying Qualcomm will walk and not try to renegotiate on July 25. Suggested price of NXP expected to drop to 90's before moving back up.
Hold on. Even though phase 2 at MOFCOM could take as long as 6 months (that's what Mr Faber from CNN said in April on TV). Despite that both firms agreed for 3 months. Mr. Faber had also mentioned in the news that N did not want to have it as long 6 months. Therefore I don't think there will be another extension.
Each company has a fallback plan: Q already announced in the last earnings call to initiate a buyback of 10-20B$. NXP has not announced anything yet, due to pending acquisition. We will learn it only after 25th of July.
Only 12 days left. Actually China should approve NOW so that shareholders will have enough time to tender to reach 70% because there are so many shares which cannot be tendered in 1-2 days.
Clock is running. We will get the news soon which have been planned by these gods months, years ago
I see a gleaming axe in a couple of meters in front us ;-)
Not so sure. There is no guarantee that China will approve this year. Once again letting the deal be in the dark we will not do any good.
I think December is more realistic. MOFCOM hasn't signed off, trump is still imposing tariffs, a US monitoring panel needs to be placed in ZTE. We need to see what happens in congress who are mostly opposed to the lifting. Will MOFCOM sign off before congress pork barrels some restrictions in a defense bill or trump raises tariffs again? Then you have the NXP share tender to deal with needing a month or two. Clemmer will need to give 2 more Quarterly reports and will continue to have bad numbers so expect more rounds of cuts/closures (DN and RF gone before end of year?) before then as he continues to lean the company. 43% of the company is in Auto because he wanted a story to sell NXP. It is now a microcontroller company. Renesas have been taking share from Freescales old business. Just when you hoped it might fail. July 25 is a fun day.
I’ve heard same rumor but deadline oct 25.. ZTE ban has been lifted. Deadline will be set to oct 25.
Do not Worry , The Deadline will be set to December 8 very soon from some sources familiar with the matter, 25 of july is simply a date to be extended
Another 200 billion of tariffs were reported overnight.