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Direxion Daily Semiconductor 3x Bear ETF (SOXS)

- NYSEARCA
  • Jun. 9, 2014, 10:36 AM
    • A slew of chip stocks are rallying following Analog Devices' (ADI +5.9%) $2B deal to acquire RFIC vendor Hittite Microwave.
    • The purchase is part of an M&A wave that has hit the semiconductor industry over the last 12 months, as chipmakers try to gain scale, cut opex, and grow their cross-selling opportunities by consolidating. Other deals: RF Micro/TriQuint, Avago/LSI, Microchip/ISSC.
    • ADI, which shares many telecom equipment, defense/aerospace, and automotive clients with Hittite, predicts Hittite's RF, microwave, and millimeter wave ICs will complement its RF and signal-conversion (ADC/DAC) products.
    • Several RF and analog/mixed signal chipmakers are higher, but they're not the only gainers: RFMD +1.8%. TQNT +1.8%. PSMI +2.5%. LLTC +1.6%. MSCC +2.1%. IDTI +3.8%. ATML +3.4%. IRF +1.4%. SIGM +3.9%. AMCC +3.8%.
    • Chip ETFs: SOXX, SMH, XSD, PSI, SOXL, USD, SOXS, SSG
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  • May. 22, 2014, 9:28 AM
    • Microchip (MCHP) is paying NT$143/share ($4.74/share) in cash to acquire all outstanding ISSC shares on Taiwan's GreTai Securities Market. The deal has an equity value of $328.5M, and an enterprise value (excludes net cash) of $294.3M. It's expected to close later in 2014.
    • ISSC had 2013 revenue of $69.2M, and an op. margin of 18.9% The company's Bluetooth ICs for headsets, PC peripherals, car stereos, speakers, and game controllers, among other products.
    • Microchip, which sells microcontrollers and other products into many of ISSC's markets, expects the deal to be immediately accretive. The company no doubt hopes to tap a growing market for embedded/wearable Bluetooth-enabled devices.
    • Is a semi consolidation wave underway? The deal is the latest in a string of industry mergers/acquisitions that includes Avago/LSI and RF Micro/TriQuint. RBC recently cited the industry's transition into "a more mature era" as a reason for becoming bullish on it.
    • Chip ETFs: SOXX, SMH, XSD, PSI, SOXL, USD, SOXS, SSG
    | Comment!
SOXS vs. ETF Alternatives
SOXS Description
The Direxion Daily Semiconductor Bear 3x Shares seeks daily investment results, before fees and expenses, of 300% of the inverse (or opposite) of the price performance of the PHLX Semiconductor Sector Index ("Semiconductor Index"). There is no guarantee the fund will meet its stated investment objective.
See more details on sponsor's website
Sector: Technology
Country: United States
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