$Lumentum(LITE)$ The CEOs wouldn't have made a deal if they hadn't known ahead of time that Marvell's earnings were going to be excellent. Marvell has better stuff than their competitors.
$Lumentum(LITE)$ 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.
$Palantir(PLTR)$ My concern with PLTR has always been the PE. But if they can keep bringing the PE in line, there's a real chance this turns into a great company story.
$Lumentum(LITE)$ I took a different approach from what was discussed earlier. Instead of rolling MRVL shares into LITE, I sold my LITE position at a loss and bought MRVL. That also gives me a tax loss to work with, and based on the latest price action, it looks like a reasonable move. There is still a long time until the deal closes, and both LITE and MRVL can be traded in the meantime. The divergence between them should become clearer next month. If the spread is still at a similar level then, I may consider getting back into LITE. The related trades are connected, and even with the hit taken this week, the more due diligence I do, the better the combined company looks.
$Palantir(PLTR)$ The easy money has already been made, but now the real money gets made. First buy-in is at $100, and that looks like a short-term support level.
$Lumentum(LITE)$ I really don't like how the deal was structured, or the timing of it. That said, I don't think MRVL and LITE are going to sit in limbo for 18 months with both stock prices just floating where they are or lower. Once this AI and tech sector correction passes, why wouldn't both of them move higher? It's been a rough couple of days, but I'm thinking a bit more clearly about it now. The declines weren't driven by anything business related at either company.
$Palantir(PLTR)$ For whatever reason, this day really tired me out. Palantir is going to be just fine though. Awesome company. Congrats to those who bought at the early lows.
$Lumentum(LITE)$ The deal should be based on LITE's closing price on 10/28/2026 at $913.95. Once the deal closes, the exchange ratio would be $931.95 per MRVL share on the closing date. I think LITE is worth more than 4.5 shares right now.
$Lumentum(LITE)$ We still won't be sure if the merger will eventually go through, but the immediate focus for MRVL and LITE should be on firming up their combined product offerings to stay ahead of their respective competitors, since both optical and chips are in high demand. If they play it well, this could provide EPS growth that's not priced in. Just to put it in perspective, 1/3 the size of AVGO would already be a $500b market cap for the combined company. I'm holding on as a long.
$Lumentum(LITE)$ Sentiment is weighing on things today, and there's clearly some heavy disappointment. Give it a few days and the mood should shift once people start to see the structure of the deal. The current deal cost is $70 bln for MRVL, which looks like great value. LITE shareholders stand to benefit as well.
$Lumentum(LITE)$ I'm honestly surprised I don't currently own LITE or MRVL. In certain circles, I'm known for having held the most take-under stocks over the last 40 years.
$Lumentum(LITE)$ This doesn't add up. Why would a company being acquired at a premium be dropping this much? Makes no sense. LITE will own 1/3 of MRVL, and if MRVL keeps growing fast over the next few years, LITE should rise along with it. Instead of seeing LITE management as bracing for an AI slowdown, I actually think it's the opposite. Otherwise, they would have taken a cash-only deal instead of a stock-only deal. I think the analysts are completely wrong on this one. I'm buying LITE at $700 and holding for the long term.
$Lumentum(LITE)$ The premium takes this deal to a price of $1128. If it goes through, that's the premium. If it doesn't, LITE should still head higher. Why it's trading in the mid $700's right now makes no sense at all.
$Lumentum(LITE)$ Under the agreement, Lumentum shareholders will receive 4.5 Marvell shares for each share held, equivalent to approximately $1,132 per Lumentum share. The terms represent a premium of around 23.9% based on the companies' October 28 closing share prices, before speculation about the transaction emerged.