Analog Devices, Inc.
Thesis
We believe Analog Devices is undervalued following its acquisition of Linear Technology, which initially caused the stock to decline. The market's perception of it as 'dead money' due to regulatory delays presents a buying opportunity, especially as we anticipate significant cost synergies and improved cash flow per share over time.
Did it work?
The thesis's key events did play out: the Linear Technology acquisition ultimately cleared regulatory review and closed, and Analog Devices went on to realize substantial cost synergies and grow cash flow per share, while the stock appreciated strongly in the years following the deal's completion — validating the 'undervalued dead money' contrarian long. However, with no price data provided and the pitch date/time elapsed unknown, this judgment relies on general knowledge of the outcome rather than measured performance, so confidence is limited.