Three of the four cash plays in the semiconductor industry I wrote about in November have been subject to buyouts by competitors in 2009. SiRF Technologies (ticker SIRF) and Avanex (AVNX) both caught a bid earlier this year. And last week, Tundra Semiconductor also agreed to be bought.
The deal values Tundra at C$4.43 a share. Tundra's shares closed at C$3.07 on the Toronto Stock Exchange on Thursday.
The other stock of the four was O2Micro (OIIM).
Returns since November 12 for each stock have been
TUN (C$) 41.3%
Average return 43.3%
The average return far outpaces the return of the broad market or the semiconductor index.
That is what buying stocks at or below net cash can do.