Out Fox The $treet

Skyworks terminates PMC-Sierra deal after the target accepts a higher bid from Microsemi. The company was expected to match the minimal increase in the deal price. The stock remains an attractive investment based on organic growth targets not reliant on a deal for PMC-Sierra. In a surprise move, Skyworks Solutions (NASDAQ: SWKS ) stepped away from the bidding war for PMC-Sierra (NASDAQ: PMCS ). Or maybe the move wasn't surprising, watching PMC accept a bid last week where Microsemi (NASDAQ: MSCC ) only increased the bid price by $0.18. Read the full article on Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

Skyworks Solutions continues to deliver exceptional results. The company has now set a realistic target of $8 of annualized EPS based on organic growth. The recommendation remains to own the stock based on the strong fundamental business with the PMC deal providing an extra catalyst for shareholders. The amazing part of the Skyworks Solutions (NASDAQ: SWKS ) story is that the stock traded at $80 last week before the executives discussed guidance for $8 EPS in a reasonably short period. Or maybe the amazing part is that this target doesn't include the accretive deal for PMC-Sierra (NASDAQ: PMCS ). Read the full story on Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

PMC-Sierra reported solid Q3'15 results. The strong results are supportive of a higher offer from Skyworks Solutions. The best way to play the deal are the suitors with Skyworks offering the best valuation even if it fails to close the deal for PMC. After the close PMC-Sierra (NASDAQ: PMCS ) released Q315 earnings. The quarterly results of buyout targets are always worth viewing since a prime reason for a board of directors to relent on a buyout is weak results. The market got a prime example of this issue with Dialog Semiconductor ( OTC:DLGNF ) plunging on weak Q4 guidance following agreeing to buy Atmel (NASDAQ: ATML ). Read the full article on Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details.