- I expect the management to unlock shareholders value by divesting the legacy Foundry Services Group (FSG). I believe recent FSG management changes point in that direction. FSG was selected as ELAN's foundry partner (2017 announcement) primarily because of the company's specialized foundry capability, and manufacturing processes with robust analog performance. ELAN's stock price skyrocketed 100% since October 2018 to almost 1b in market cap. I believe the following is the reason: "Integrated chip (IC) makers in Taiwan and China are gearing up for an expected surge of shipments to meet increasing demand for biometric identification chips in 2019, industry sources told Chinese daily Digitimes.". This spells good news for MX Foundry business (even in case of no Divestiture. It could surprise MX investors to the Upside at the upcoming conference call / results or 2019 guidance!
- November 26, 2018 Nader Tavakoli was appointed as Chairman of the Board of MX. Mr. Tavakoli is also the Chairman and CEO of EagleRock Capital Management, a private investment partnership based in New York City. This should insure good corporate governance after problems MX encountered earlier this decade.
- As of yesterday, January 31, 2019 I believe a big buyer is out there accumulating shares on the cheap (multiple 100k block trades). You will find all the details in the report.
- Short term Catalysts translate into a $17 price target (190% upside from here).
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Disclosure: I am/we are long MX.