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EMAN short squeeze, MACom products and MX OMIBs +3
19:31 05-Aug-20
Shares of eMagin have spiked over 35% after hours to about $1.50, after declining recently. I see this a a belated short capitulation after the defense contract announcement basically confirmed that eMagin will have a sustainable, if not profitable, business for at least the next 3 years, barring a change in defense budgeting. As of mid-July, shorted float had been fairly steady at 2.1M shares, which is under 4%, but the rebate rate, which had been chopping downward through the thirties, is now at 25%. It's notoriously difficult to predict the tops of squeezes, but with very little daily trading volume, this could go much higher. The pre-election gamble is paying off!
MACom is also looking to benefit from defense spending with a new line of best-in-class millimeter wave switches. This isn't nearly enough to get me interested in MTSI at current prices, but the capabilities and small footprint do represent a significant positive. These factors also lead me to wonder about usage of Resonant's filters and I am making inquiries.
Finally, MagnaChip has just reported two open market insider buys from the CEO and a Director. I have no interest in the stock in the high $11 range where purchases were made, but I've already conceded the possibility of M&A and, in very different ways, the results from both Fitbit and MicroVision are further evidence that just about anything can happen in the current economic environment.