QCOM Takeover Talk Still There

[Admin]

Takeout rumor mill still active:

www.bidnessetc.com/45518-qualcomm-inc-could-line-up-takeover-bid-for-applied-micro-circuits-corporat/

[Admin]

Apparently, QCOM will go it alone for now, and once again the air is coming out of AMCC's share price.

www.bloomberg.com/news/articles/2015-10-08/qualcomm-shows-off-first-server-chip-in-effort-to-expand-reach

[christopher]

AMCC has had a very good run to the upside this week. When I left earlier this week(Monday) we were sitting around $5.50 a share. Returning home today (Friday) I see we have reached a $6.16 high and pulled back a bit to settle around $6.00 share.

With the "In House Press Conference" to be held on October 14 (next week),

Could there be something here to persuade an interested party?

The air that came out of AMCC share price today (Friday, Oct. 9 )  all on low volume=  550,000 shares  (after a great week)

Let's hope Oct. 14 is a release of excellent news!!! ON TOP of X-Gene 3!!

Isn't it odd that AMCC has yet to announce an earnings release date for Q2 of this year?

We are less than three weeks away from the estimated date. 2014 Q2 was on 10/30/14

Maybe a sale will be released on the date of the "In House Press Conference" for that awesome price of $16 share that was previously projected upon!!  WOWWWWWeeeeeee would that make my day!!! 

I can dream can't I  ?

One item that I must add here is:  that at 5:00 AM ET here Ameritrade is showing short interest in AMCC at 13.82%

this is almost a 1% decrease since the previous list of 14.88%, previously held. to me this is a positive!!

[christopher]

In response to the above story "Qualcomm shows off first server chip"

Qualcomm President Derek Aberle stated:

"It's going to take multiple years of significant investment before we see the kind of returns that are out there. We think we are one of the few companies that can step in and deliver."

This by all means sounds like a company (Qualcomm) that continues to have an interest in AMCC. 

"significant investment"

What about Intel having an interest in AMCC?

Actually, WHO else out there could have an interest in AMCC?  There must be a list

[Admin]

You raise a lot of good points Chris.

If we look at the TAM of server chips, that number is around $20B by 2018, and ARM claims that ARM-based server chips should be able to claim around 25% of that market. AMCC is a fist-mover, among many, but a first-mover never the less, which should get them around a 40% share of that market, or around 10% of $20B. We're talking $500M quarters. That's ridiculous! In fact, half of that is still ridiculous!

That's a 20%+/Qtr. growth rate in revenue over the next 12 quarters! Analyst estimates only currently provide for around a 4.5% growth rate per quarter ($37M, 39, 41, 44). Even the analyst consensus sees the growth in revenues accelerating going forward (to around 6%/Qtr.). Something tells me that we're going to be seeing some healthy surprises to the upside.

Like someone on the Yahoo board said, "it looks like a math error"! Maybe QCOM did already offer $16/share, and Gopi just laughed.

AMCC is still very mysterious about October 14th: www.apm.com/news/appliedmicro-to-hold-in-house-press-conference/