While most investors have been fixated on the outcome of the Brexit vote over the past ten days, there was good news regarding a couple of the “Top Tech Takeover Targets” that I identified in our most recent issue of Breakthrough Tech Profits.

On June 23^rd an article at the TheStreet.com, “5 Stocks Insiders Love Right Now”, included fiber-optic networking company Applied Optoelectronics (AAOI) in its list due to the purchase of more than 100,000 shares by one of its directors at a total cost of just over $1 million. That’s a lot of money in anyone’s book, and not the type of transaction that a company director would make only out of loyalty (especially when it increases his stake in the company by more than 80%). It remains to be seen if this transaction portends any sort of major news announcement later this year, but just the fact that it was noted by the TheStreet.com was enough to draw attention to it. And with a market capitalization – or the total value of all its outstanding shares – of less than $200 million, that’s all it took to drive its share price from an intraday low of $9.07 on June 27^th to a high of $11.50 on July 1^st. Since then it has cooled off a bit, opening this morning at $11.07 and trading lower along with the overall market, but that’s still a nice gain in the near term. More importantly, we’re hopeful this substantial purchase by a company insider is confirmation of our belief that this company is a likely takeover target, so buy AAOI up to $12.

One of the other takeover targets identified in that same article, Synaptics (SYNA), announced on June 29^th that its fingerprint sensor technology was selected by TCL Communications for use in its Alcatel smartphones sold in the U.S. and abroad. According to the company’s press release, “With the touch of a finger, Synaptics’ Natural ID biometric authentication securely unlocks Alcatel devices, furthering the company’s position as a leading global mobile device manufacturer and bringing more feature-rich, value-focused technologies to the mass market.” The financial benefit of this development will not be felt immediately, but for a smallish company like Synaptics it could have a meaningful impact on 2017 earnings. For that reason SYNA’s share price rose only modestly on this news (+2.7% on the day of the announcement), but it creates one more business entity that may consider purchasing Synaptics to acquire ownership of its patents and other forms of intellectual property. SYNA is a buy below $75.