Up 96% in value, receiving stock in
Lantronix is proving to be a big bonus for former shareholders of Intrinsyc
In January of 2020, Lantronix Inc. finalized its
takeover of Intrinsyc Technologies Corp., which was once a Top Idea for
Investorfile when it was listed on the TSX (See: Intrinsyc
Technologies: A high-tech turnaround play, for small cap value investors).
Lantronix paid Instrinsyc shareholders US$0.55 cash per share and exchange
0.2135 of a share of the common stock of Lantronix for each issued and outstanding
share of Intrinsyc Technologies.
As a result of this takeover, shareholders of Intrinsyc received the equivalent of
about C$1.90 per share based on the date for the receipt of cash and Lantronix
stock. On closing, this translated in to a return of about 153% since the date Investorfile first recommended Intrinsyc Technologies’ stock as a small cap value investment (it
was then trading at C$0.75 per share).
earning a 153% return on an investment is excellent, we thought there could be
still more upside left on the table by continuing to hold the stock received in
Lantronix. Investorfile documented that opinion
in its blog post last year (See: The takeover of Intrinsyc Technologies may be
the gift that keeps on giving). In hindsight, we were right. Since the takeover,
the stock price of Lantronix
is up significantly.
opinion on the further upside potential was based on the expected synergies from joining Intrinsyc and
Lantronix together, by becoming part of a bigger company and the NASDAQ listing
which attracts more US
institutional investors so the stock can trade at a higher valuation level.
Since Lantronix’s purchase of Intrinsyc, it has made several other acquisitions,
Today, Lantronix Inc.
(NASDAQ: LTRX –
itself as A global provider of secure turnkey solutions for the Internet of
Things (IoT) and Remote Environment Management (REM), offering Software as a
Service (SaaS), connectivity services, engineering services and intelligent
hardware. Lantronix says it enables its customers to accelerate time to market
and increase operational up-time and efficiency by providing reliable, secure
and connected Intelligent Edge IoT and Remote Management Gateway solutions.
Investorfile blog is focused on growth stocks listed on Canadian exchanges, we
do not cover Lantronix today. That said we are still optimistic that there is
still more upside potential by continuing to hold this stock for greater gains.
We note, as of today, US research investment analysts
have 12-month targets for Lantronix’s stock price as high as US$10 and US$11
Since the date of closing
of the takeover of
Intrinsyc Technologies, Lantronix’s stock price is up 96% in value.
former shareholders of Intrinsyc, who today now own shares in Lantronix, we can
confirm now that "it is” the gift
that keeps on giving!
share ownership disclosure: LTRX – Yes
article is for informational purposes only. This article is based on the
author's independent analysis and judgment and does not guarantee the
information's accuracy or completeness. The information contained in this
article is subject to change without notice, and the author assumes no
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contained within this article should not be construed as offering of investment
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is not engaged in an investor relations agreement with Lantronix, Inc. nor has
it received any compensation from Lantronix, Inc for the preparation or
distribution of this article.
author of this article has acquired and may trade shares of Lantronix, Inc through
open market transactions and for investment purposes only.