MIPS Takes Out New High on Continued Buyout Hope

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