Posted: 7/27/2012 12:43:21 PM
99% of the time, you simply cash out of the current price and move on. However I've been tracking this stock for quite awhile and think there's some consideration in holding this stock.
Corning came out with the Willow Glass this year which is a revolutionary type glass that bends, twists, rolls, curves ... it will be used in ALL next generation smartphones (prolly 2013/2014). This glass is super thin ... this is KEY ...
The current AUTH biometric sensors cannot be used under the glass unless it's shaved or the glass has to be super thin (no current glass is thin enough) ... you have to physically touch the biometric sensor. The current sensor has the right size, doesn't drain the phone battery and is reasonably priced. The problem is the placement. If this sensor can be placed under the glass, it's almost a guarantee that every smartphone going forward would use this biometric sensor in future NFC phones. With the development of Cornings Willow Glass, the ultra thin glass allows AUTH sensors to be placed under the glass giving it the clean uninterrupted front design smartphone manufacturers desire.
To make a long story short, there's a very reasonable chance Samsung counters with a bigger offer in the near future. Remember Samsung and AUTH just entered a contract for its premier Samsung Galaxy S3. What happens if Apple buys AUTH? You think Apple will allow Samsung to buy AUTH sensors going forward ... after their contract expires? Maybe ... maybe not. With the AUTH market dominance in biometric sensors, Willow Glass, NFC market potential ... Samsung and/or Broadcom may counter with a better offer. There's already an article out regarding the opt out fee if AUTH finds a better offer.
Congratulations on your big score. You can't lose no matter you do. Wait or don't wait ... AUTH is a winner winner chicken dinner.