Friday, September 27, 2013

Bid For RDA

I just saw that a state owned company in China (RDA Microelectronics Announces Receipt of Non-Binding Acquisition Proposal) has made an unsolicited bid for RDA.

It is kind of ironic as the day before, they were downgraded and the analyst was urging investors to sell (RDA Microelectronics downgraded by Chardan Capital Markets).

RDA is up 43% for me since I bought them in my May 2013 MFI tranche.  The suggested buy out price is $15.50, which would take my gain to 60%.  That does not seem like much of a premium to the current price, but if the comments regarding the downgrade are correct, it could be tempting.

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