Silicon Storage Technology, Inc. (SSTI)

I'll bite on this one. Silicon Storage Technology indicated today that they will be purchased by a private firm for $200 Million or $2.10 per share. Share price spiked well above $2.20. ($210 Million). I see some of the speculation that caused this apparent "overshoot", but is it worth your hard earned coin. IT is true that Silicon's books show assets/cash, (if you value inventory at the level they have it) at $240-$250 Million. The investor is getting it for "free" and then some. It's possible, (likely) that a class action suit from jilted investors will follow. Some of the larger institutional holders may be happy to get out at $2.10 or may scream as well. SSTI has never been a high flyer, but some see potential as the semiconductor business improves. Personally, I can't see bidding this up above the offer price. The typical share price of a company with a strong outlook of closing a merger is about 95-97% of the offer price as a small profit is all you can expect for holding onto an equity until it closes and you get the final price. I believe the S&P will go up the rest of this year, Silicon Imaging is destined to slide downward, a class action suite would be questionable and just continue to drain the companies resources and limit the investor grade of this company.

Looking for Low price 10 baggers 8/11/09