RE:RE:RE:RE:Wolfspeed to sell RF Business to Macom for 125 M.I read a Motley Fool article and it is very confusing to say the least. The RF business that Wolfspeed is selling off seems to be in the semiconductor one but they have other ones that they are also part of by the looks of it automotive industrial and renewable energies. Gregg Lowe the CEO stated that they are selling off the RF business to Macom Tech but that is all semiconductors and chips. The way I read the Fool article is that with the cash infusion they will likely put their focus on the mentioned sectors...automotive industrial and renewable energy markets.
I seemed to lose access to the article but I am going by logic as to what Wolfspeed looks to be selling and to who and by this quote.
The company quoted CEO Greg Lowe as saying, "Given the significant growth we've seen in automotive, industrial and renewable energy markets, we believe this is the right time to further focus on scaling our Power device and materials businesses to meet this accelerated demand."
The company was taking a beating on the silicon chips and figured that it could use the cash infusion plus have Macon shares as a cash share deal which is being worked and as you have said Blitzer it has yet to close. What does this exactly mean in relation to axe is anyone's guess. This heating market is huge and if axe had amicable dealings with Wolfspeed in the past it can potentially turn out to be something who knows. But here is the thing company management doesn't tend to mention other companies unless they are looking to work with them aside from talking about competitors in the field or unless they themselves have personal holdings. Caveat I have no clue what management said to you and in what context so without knowing this it is taking a guess in the dark and trying to piece things together but yes what Blitzer said shows ties now whether there will be strategic advantageous ties or Wolfspeed becomes another player in the space I don't like to bluntly say competitor has yet to be seen but they clearly are on a stronger more reputable exchange are in the process of trying to divest one segment of rf which I strongly believe pertains to the semi conductor but not the other uses of the ip so hence the article is confusing and badly written the one I read.
Of course I would love to see a strategic partnering vs another player in the field. Having said this this is very fascinating to say the least it just shows the type of overall potential axe has and why I keep saying what I do about the share value and for management to not sell full ip for cheap and if they divest in segments to get huge payouts when doing so. Things will continue to heat up (pun intended) and continue to become more and more exciting and the plot thickens. Sorry one last time saying this the shares are severely undervalued I am really happy to have secured the handful. I don't know what they will be at towards end of September I am guessing more than .20 anyways and actually why I added now. Let's see where things go but 100k plus this Friday hmmmm. Not sure if this is because Wolfspeed was mentioned. Like I said unless I know the context to what management talked about them hard to say if they will be a strategic partner as I will love or another in the space which we can't worry about if we believe what we hold here and know that things don't operate in a vacuum and that axe is not the only game in town. That said 500 billion heating market tons of room for many to find their success in it. I percent market share 5 billion 10 percent 50 billion so providing we have something and it goes as I strongly believe it will just all fine tuning yeah things are about to heat up and get out of this deep freeze. This is all exciting stuff and if anything Wolfspeed partner or not shows what is possible!!!