QUALCOMM (QCOM-Q) is supposed to acquire this on September 22. Hold or Sell? When you get an acquisition offer, there is a relative spread that occurs, and as soon as the announcement occurs, it tightens, but there is always a little bit left over. You can take an arbitrage trade, and if you put some leverage on it, you may be able to juice your return and take the differential between the Buy and the merge price, and perhaps get 10% in a very short period of time. The underlying risk would be if the merger didn’t get approved. There are going to be a few gates they have to go through before this is approved, so tying up your money would not make a ton of sense. If you can Sell into it, just do that.

He does not think the deal is going to happen.  The market is skeptical as well.  He would continue to hold and see what happens.

(A Top Pick March 10/15. Down 18.94%.) Got stopped out in July and sold his holdings at $96. Semiconductors are a pretty good sized piece of his portfolio today, as technology is making a nice turn.

(Top Pick Feb 19/15, Down 17.53%) It is getting caught up in the AAPL-O supplier downdraft.  They make the finger touch control.  They are also in the automotive business for semiconductors and that will grow for them as they just closed an acquisition in this sector.  It’s at about 12 times earnings so he is happy to continue owning it.

(Top Pick Nov 17’14, Down 7.69%) Credit card chips and payment chip inside the iPhone 6 and they make chips in your car.  They announced an acquisition that closed last fall.  Then the concerns of China came up.  They have been dragged down by Apple concerns.

(A Top Pick Feb 19/15. Up 6.27%.) Just after he was on the program, they acquired Freescale, which is still in an ongoing process through FDC. The stock reacted very positively to this. Unfortunately, the whole semiconductor group has come under a little bit of pressure with respect to pricing. Also, this is an Apple (AAPL-Q) supplier, and a lot of the Apple supply chain has had some volatility. At 14X next year’s earnings, this is a very cheap stock.

Have a couple of neat product categories, but the one that most people know them for is the little silver chip on credit cards. It is also on the iPhone 6 for Apple pay. Credit card with chips is just rolling out in the US. Have a big acquisition closing later this year with Freescale Semiconductor (FSL-N) which will be very, very positive for them. This will make them #1 in automotive. The stock has pulled back with the general tech pullback and mid-$90 is an excellent entry point.