Quick Win by the Algorithm: Aixtron SE (AIXG)
Quick Win by the Algorithm
Aixtron SE
On May 20th, 2016, the I Know First algorithm gave a bullish signal of 18.80 for the ticker AIXG with a predictability indicator of 0.2. In accordance with the algorithm’s prediction, AIXG jumped 24.80% in the following three days.
Aixtron SE is a provider of deposition equipment to the semiconductor and compound-semiconductor industry. The Company’s technology solutions are used by a diverse range of customers to build advanced components for electronic and opto-electronic applications based on compound, silicon, or organic semiconductor materials.
A group of Chinese investors agreed to buy Aixtron SE, a German supplier of semiconductor equipment, for 670 million euros ($752 million), giving the manufacturer a chance to expand in Asia, a very lucrative market.
Fujian Grand Chip Investment Fund, which is 51% owned by Chinese business man Zhendong Liu and 49% owned by Xiamen Bohao Investment Ltd., has agreed to pay 6 euros in cash for each ordinary share of Aixtron. This price is 50.7% higher than the three-month volume-weighted average share price prior to the announcement.
The transaction still needs to be approved by regulators, and Aixtron may attract other bidders because of its focus on promising new applications and technologies, analysts at Kepler Cheuvreux said in a note. In such a scenario, the price may end up being as high as 9 euros a share, they said.
Aixtron and FGC view the transaction as an opportunity to grow and to expand the company and its workforce. The transaction isn’t directed toward cost or staff reductions.
