At least I made some money on put options when this whole accounting mess came up. However, not enough to offset losses. I don't see how this stock ever gets above $10 again.
After MRVL announced that the company will be cutting back and laying-off 17% of their employees, investors seemed to have got excited and starting buying the stock. Investors are confused between "saving money" and "not having the money". The press release was twisted in the sense that it was to promote investors into buying the stock. You see, when you only mention the good about cutting 17% of employees, you are stating you're a paid promoter. Why did the article not mention cutting 17% of employees is a sign that the company is doing so poorly that they can't afford to pay everyone?
You have to look this from a business prospective, and not from a biased press release.
The company needs to lower the cost of running the business because they don't have enough money to keep going with their current business plan. They cut 17% of employees because they can't afford it, not because they are looking to profit more.
The stock declining from $16 to $9 in 6 months shows how the company is doing.
Sentiment: Strong Sell
Made about 30% upside on their last play. Have any of you traded with PennyStock101 (org)? They were right on the money!
September 17th, 2015
Shares of Marvell Technology Group (NASDAQ:MRVL) saw a large decline in short interest during the month of August. As of August 31st, there was short interest totalling 5,735,484 shares, a decline of 23.6% from the August 14th total of 7,507,513 shares, Analyst Ratings Net reports. Based on an average daily volume of 6,925,146 shares, the short-interest ratio is currently 0.8 days. Approximately 1.4% of the company’s stock are short sold.
I'm not sure insurance would cover misleading statements, failure to disclose, etc.
MRVL trailing twelve month revenue per share is $6.26, add to that the cash position of $4.83 and EPS of $1.07 for next 6 months which itself projects a value of $12.16 ...
Doesn't that make MRVL a steal below 12.16 ...
Doesn't MRVL with cash of $4.83 and 6 month EPS $0.92 shows a 2x probability ...
In 2015Q2 MRVL is expected to earn $0.11, 2015Q3 it is expected to earn $0.15, in 2015Q4 $0.15 and in 2016 it is expected to earn $0.66 making a total of $1.07 for next 6 months ...
They now have a "market underperform" rating on the stock. 18.7% downside from the previous close of $8.62
Gloom and doomers are wanting this cheaper but I doubt it. I do think it's stuck here $8 to $9 for a few months. The lawsuits are mostly insured and will not be a hit to bottom line. SEC may get a fine out of this from them. Legal expense may drag a few pennies.
MRVL is still a company with a business.
I would think if you are stuck long you wait for recovery of some degree. Not jumping in as a buy yet but in a few months this will be a squeaky clean company with all write downs out of the way for a few years.
or the new guy is the scapegoat. Lots of hype recently of which Najarian on CNBC is one. Lessons learned even these people are subject. Of course he or CNBC will make the connection