Volume Spike Investor

We are seeing a massive surge in trading volume at Simtek Corp.  (NASDAQ: SMTK).  The company is being acquired by Cypress Semiconductor (NYSE: CY) in a $46 million aggregate transaction.  The offer is a cash tender structure at $2.60 per share and is expected to close in the fourth quarter of the year.  Cypress does already own about 4% of Simtek via a marketing relationship it holds where it has been marketing and licensing Simtek’s technology since early 2006.

This is a huge deal for Simtek but a tiny one for Cypress as its market cap is roughly $4 Billion.  Simtek has traded as low as $1.37 and as high as $5.05 over the last year.  It looks like shares were significantly higher in the years past.  No stock options trade in SIMTEK shares.

JON OGG

August 4, 2008