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INVN rumor and 3Q17 report ?6

The preliminary proxy for TDK purchasing InvenSense has been filed this morning.  INVN shares are up 2% already, and I expect they should return to their former levels since the transaction is now as sure as it ever was.

On 02/02/2017 09:27 AM, Esekla wrote:

InvenSense has just filed the 10-Q for its fiscal third quarter of 2017, with an 18 cent GAAP EPS loss of 18 cents on revenue of $79.8M.  The former figure may not be comparable to average analyst estimates for a 2 cent profit, and the latter figure misses by $400K. 

More importantly, the document lays out the already detailed terms of the TDK takeover with no modifications, that I can see.  The fact that InvenSense is apparently not planning to hold a conference call in conjunction with this filing lends further weight to my opinion that the transaction is going ahead as planned and that any rumors to the contrary are just market manipulation.

On 02/01/2017 02:29 PM, Esekla wrote:

In fact, the just reported earnings for TDK show a cash expense for acquisition in approximately the amount being paid for InvenSense.  I have said that I thought the $13 per share price tage was generous, and there is still more down than upside if the deal really was off.  Nonetheless, this makes me even more doubtful of the rumor.

On 02/01/2017 02:16 PM, Esekla wrote:

InvenSense is dropping hard, apparently on a Twitter rumor that TDK is pulling out of the deal.  I don't see anything to substantiate this.  In fact, the only recent news that is even remotely related is a somewhat positive earnings announcement (Japanese) by TDK.  My guess would be that this is another example of fake news, but that is only a guess.