MLNX is no longer a growth story. They have already reached peaked revenue and tapped into most of the possible customer base. Revenue will now start declining qoq.
All the fund and investors that gotten into MLNX as a growth play will be steadily dumping the stock. The good news is you can get out before it completely collapses and there's also sitll time to short.
The funds won't sell it all at once and break the stock. It go from the 70's to 60's and 50's before settling down to it's true value in the 40's.
Not sure how you calculate true value in the 40s (my very IGNORENT friend). Seems like a number you pulled out of URANUS. Nonetheless, I hope everyone shorts this pig, bc my puts expire Friday. So, please go to $40. Thanks marcanthonycoal #$%$
A company with declining revenue in the near term and an uncertain future should trade for no more than a P/E of 10-12. Assuming they can earn between $3.5-$4 a year per share and you have your number.