On August 4th I shared my investment thesis for CyberOptics on the blog. My plan for this stock was to hold it long term and scale into my position over the next couple of years. This plan was disrupted by a pleasant surprise.
Four days after I published my article about CYBE, the company issued a press release before the markets opened on August 8th. CyberOptics announced "that its Board of Directors has unanimously approved a definitive agreement pursuant to which Nordson
Corporation (NASDAQ: NDSN) will acquire CyberOptics for $54.00 per share in cash for each outstanding share of common stock held. This purchase price represents a 47 percent premium to CyberOptics average closing stock price over the last 30 days and a 11 percent premium to CyberOptics 52-week high closing price."
This was indeed a positive surprise I didn't see coming! As the transaction is expected to close before the end of 2022, I sold my shares (private account & wikifolio) for $53 per share (earning a nice profit). The transaction was unanimously approved by CYBE's Board of Directors and is a cash offer, so the best choice for a retail investor is likely to sell right now and use the proceeds for another investment.
An alternative for CYBE
Based on my CyberOptics article, the semiconductor industry is in great shape and will likely grow over the coming years. With the CHIPS act now passed and signed, billions of dollars will flow into this industry. During my research for CYBE I discovered another picks and shovels play on the growth in the semiconductor industry: AXT Inc (NASDAQ:AXTI).
AXT is a material science company that develops and manufactures high-performance compound and single element semiconductor substrate wafers comprising indium phosphide (InP), gallium arsenide (GaAs) and germanium (Ge). The company’s substrate wafers are used when a typical silicon substrate wafer cannot meet the performance requirements of a semiconductor or optoelectronic device. This is a company that readers that missed CYBE might do some research into.
AXT inc is now part of the "Picks and shovels plays" wikifolio, which is traded on the German Stock Exchange.
Disclaimer: This blog post is purely my personal opinion and is not financial advice. Please do your own research, before taking investment decisions. I am long AXTI. No payment or other incentives were received in exchange to write this article.