Three of the four cash plays in the semiconductor industry I wrote about in November have been subject to buyouts by competitors in 2009. SiRF Technologies (SIRF) and Avanex (AVNX) both caught a bid earlier this year. And last week, Tundra Semiconductor (OTC:TRSCF) also agreed to be bought.
Gennum Corp (GND.TO) is buying intellectual property firm Tundra Semiconductor (TUN.TO) in a cash and stock deal worth C$86 million ($69.4 million), the companies announced late on Thursday.
The deal values Tundra at C$4.43 a share. Tundra's shares closed at C$3.07 on the Toronto Stock Exchange on Thursday.
The other stock of the four was O2Micro (NASDAQ:OIIM).
Returns since November 12 for each stock have been
TUN (C$) 41.3%
Average return 43.3%
The average return far outpaces the return of the broad market or the semiconductor index.
That is what buying stocks at or below net cash can do.