Wednesday, May 28, 2008

Quiet outperformance, and more deal info

Some of my portfolio holdings have been quietly outperforming in recent months, after a brutal selloff last year. One of these is Avanex (6.5% of portfolio), which crept past the $1.10 mark this week. If the optical component makers can achieve some margin expansion in coming quarters, I expect the gains to continue.

In other news, Zilog (5.0% of portfolio) recently released an 8-K detailing their 3-year business plan and projections. The point of this is to show that recent $4.50 per share offers for the company are too low in the context of projected 2009-10 profitability. Problem is, investors seemingly have little confidence these goals can be acheived; it remains to be seen how hard large investors will push the Board of Directors. In any case, another 8-K just filed details management's response to Ixys, and states that a response should come by May 30th.