Atmel (NASDAQ:ATML) still looks to me like a "couda, wouda, shouda" story. There are a lot of good and/or attractive things about this company - its leadership in MCU, its potential in the Internet of Things (or IoT) market, its margin self-improvement potential. Unfortunately, there are also legacy issues like strategic/execution missteps (xSense, for one), past failures to identify/execute good deals, disappointments relative to prior margin improvement goals, and ample competition.
I'm not sure why I want to like Atmel (maybe it's because Atmel was one of the first stocks I ever bought), but I still do. Certainly the NXP Semiconductors (NASDAQ:NXPI)-Freescale (NYSE:FSL) deal and the relative scarcity of good MCU assets helps the valuation proposition, but Atmel doesn't jump out to me as an obviously cheap opportunity. There is definitely self-improvement potential here (and the possibility for better revenue/margins to drive a higher value), but Atmel has frustrated investors with its unrealized potential in the past and I'm not sure management has earned the benefit of the doubt it takes to be really excited about the shares at this level.
Legacy Businesses Still Causing Some Turmoil
Atmel's fourth quarter revenue performance wasn't great (down 2% yoy and down 8% qoq), and the guidance for the first quarter was weak (7% below the prior average estimate at the midpoint). A meaningful portion of this can be traced back to issues in the legacy business, as older MCU products are not holding up as well.
Atmel is still in a challenging spot with its touch business. The company's market share has shrunk considerably over the years as Synaptics (NASDAQ:SYNA) has out-innovated (with products like TDDI chips) and cheaper Asian rivals have taken a bigger piece of the mid-range and low-range markets. That said, the company has gained business with Xiaomi and Lenovo (OTCPK:LNVGY) and I think it is premature to say that the touch business has nothing more to offer.
Make a offer for atmel ---let's stop the bleeding !
the stock is never going anywhere --------------up a point down a point .
first time i ever put a sentiment disclosure on this board and it is a sell
thought about a strong sell
let the bidding begin . Do i hear 12 ??
.04 guess who owns all those FREE SHARES??
crqp in crqp out
I turned the cc off after a few minutes---heard it many times before ---I can't believe I still own some of this crqp.