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Marvell Technology Group Ltd. Message Board

  • m0recent5 m0recent5 May 6, 2011 3:44 PM Flag

    In at $14.78 on this perspective:

    1) Very Low P/E, Solid Balance Sheet, and $0 debt.
    2) Entry at 76% of $20 share price only 60 days ago.
    3) Industry leading company with proven leadership.
    4) Company with huge technical talent and innovation.
    5) RIMM impact overstated by analyst/consumer sentiment and non-US results for their mobile/wireles products will more than offset RIMM development.
    6) Many many products in high-growth industries along with mobile and wireless.

    Given all the above, how can you not like this company's potential going forward. I believe this stock will touch $17 before May is over and I believe we'll see upgrades in the next two weeks.

    All above IMHO and nothing more.

    GLTAL

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    • Upgrades coming as I stated on May 6th. Along with Zacks, FBR yesterday also had very positive comments on Marvell.

      This company has too much technical talent and will PR innovative products over the new few weeks going into earnings release; announcement of design wins will not be surprising here.

      Market expectations currently are very low for a company of this caliber. Blackberry way overblown here when you look at the high product diversification and innovation (2nd to none) in various hot markets.

      P/E, balance sheet, no debt, visionary leadership, and global footprint all a big +++.


      IMHO

    • The problem is you have a stock in a downtrend. I can almost see the 52 week lows from here. RIMM is just one major issue. The other big issue is major exposure to PC storage segment which is in a decline against the rise in tablets.

      This does not necessarily mean that the world will end tomorrow, but big money likes to invest for the future. When you look out 2-3 years out the question becomes what will MRVL do to diversify and shift it's focus away from these 2-segments that are in decline.

      Valuations, balance sheet are dirt cheap. But money in the bank does not buy you jack. Investors are in a wait and see stage to see 1) How bad is it now and going to be in the future 2) What plans does MRVL have to fix this.

      Your point about $20 to $14 is valid, but one must ask why would a company with solid balance sheet and cheap valuations at least on PE basis, why would the stock be under so much pressure in a roaring market?

      • 2 Replies to gilwaya
      • "Your point about $20 to $14 is valid, but one must ask why would a company with solid balance sheet and cheap valuations at least on PE basis, why would the stock be under so much pressure in a roaring market?"

        to answer your above question it could be anything from manipulation, exaggerated fears, or probably management wants to buy back shares cheap or it could be anything else. If this market was rational as you are talking everyone would be making money if it was that simple to say as you mentioned.

      • Gil, Thanks for your perspective on this stock and, down the road, you may end up being spot on - maybe not. However, I am going with my gut on this investment [not just analyst speak and published industry trend] just like I did with Cirrus and Nvidia (when they also tanked) over the last few months and made a lot of money on their declines - and rises. My money is on Marvell and I'm very comfortable with their financial stance, their history of innovation and current market sentiment [ always a big factor for me].

        Only time will tell, but at this point, I have a some time on my hands and expect good things going forward from this price point. I still expect some declines along the way back to high teens, but I believe those drops will not be as concerning had I gotten in much earlier.

        Unlike the general market, I'm far from calling "Game Over" on Marvell, I'm actually betting on them coming back in a big way in second half of the year.

        GLTY

 
MRVL
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