$Lumentum(LITE)$ The spread has widened from 11.2% at the deal announcement to 15.4% as of June 11. The MRVL/LITE ratio is currently at 3.82, which is the same level it was on October 8. The market values the ratio below 4.5. At the current share price, you can buy MRVL through LITE at $119.61, compared to $141.25 for one MRVL share. LITE and MRVL have both fallen by 48.6% month-to-month, and what stands out even more is the drop from October 28, before the deal, of 42.5%, versus an average decline of 20% for SOXX and Coherent. So roughly half the sector decline and half deal-related. LITE still reported strong results. In my view, this looks like a solid buying opportunity with more than a 15% discount.
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