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What: Shares of discrete semiconductor and passive electronic component manufacturer Vishay Intertechnology (NYSE: VSH) surged 11% today following yesterday's announcement that the company was purchasing privately held HiRel Systems.

So what: On Tuesday, Vishay agreed to buy HiRel Systems for $85 million in order to strengthen its position in specialty magnetic products. According to Vishay CEO Dr. Gerald Paul, shareholders can expect to see acquisitions like this from time to time as the company looks for ways to grow its business.

Now what: The one thing that was missing from yesterday's buyout news was whether this purchase would be accretive to earnings and when. Without that piece of information, I'm always skeptical of even the smallest of buyouts. Like many semiconductor stocks, Vishay is relatively inexpensive based on its trailing-12-month EPS -- but just like nearly every stock in the sector, sales are contracting with revenue expected to drop in fiscal 2011 and 2012. It's not shocking to see Vishay use some of its ample cash for sales growth purposes, but I'm not convinced even at 1.1 times book value that the stock is a buy here. I'd take a watch-and-wait approach.

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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.