MIPS Takes Out New High on Continued Buyout Hope
MIPS Technologies Inc. (NASDAQ: MIPS) has been on a major run of late, and shares hit a new 52-week high this morning. We have seen four consecutive days of gains, as this closed at $6.37 back on August 30 and…
Bloomberg reported back in April that the struggling processor design firm had hired Goldman Sachs Group Inc. (NYSE: GS) to find a buyer. Just this week an article at Seeking Alpha updated that situation.
Now this morning as of 10:17 a,m. EST, we have seen a whopping 3,016 contracts trade in the September $8.00 call options trade hands. The open interest was only 1,042 contracts, and the 360,000 shares traded so far today makes the options volume on a fully leveraged basis nearly the same as the stock volume.
The market cap for MIPS is only $393 million, but it still trades at close to four-times its book value. The company also has no debt.
JON C. OGG
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Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.