MCHPP: Microchip Technology's 7.5% Mandatory Convertible Preferred Stock IPO

(16min)

Summary

  • We analyze Microchip Technology's 7.50% Series A Mandatory Convertible Preferred Stock after its IPO, despite it not fitting our typical financial objectives.
  • Convertible securities can offer attractive arbitrage opportunities, making them worth studying, even if they don't align with our usual investment focus.
  • Microchip Technology has a stable 'BBB' credit rating from Fitch. However, OTC bonds are showing some weakness.
  • This investment could appeal to some readers, so we present our findings for you to decide its suitability.
  • Looking for a portfolio of ideas like this one? Members of Trade With Beta get exclusive access to our subscriber-only portfolios. Learn More »
Artificial Intelligence, concept CPU - quantum computing

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Co-authored by Relative Value.

Overview

In this short article, we will present our IPO analysis of a new fixed-income security after its first days of trading on the exchange. This is the type of study by which we try to pay attention

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At Trade With Beta, we also pay close attention to closed-end funds and are always keeping an eye on them for directional and arbitrage opportunities created by market price deviations. As you can guess, timing is crucial in these kinds of trades; therefore, you are welcome to join us for early access and the discussions accompanying these kinds of trades.

This article was written by

14.37K Followers

Arbitrage Trader, aka Denislav Iliev has been day trading for 15+ years and leads a team of 40 analysts. They identify mispriced investments in fixed-income and closed-end funds based on simple-to-understand financial logic.

Denislav leads the investing group Trade With Beta, features of the service include: frequent picks for mispriced preferred stocks and baby bonds, weekly reviews of 1200+ equities, IPO previews, hedging strategies, an actively managed portfolio, and chat for discussion. Learn more.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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