I really dont know how high it would need to be to have MRVL entertain it. No one is going to bid without a high chance of getting the deal to work. 1/3 of MRVL's current price is cash. So if you add back in $4.50 in cash on top of the current 15 pe or so....that brings you up to $20.
AVGO - BRCM merger will imo cause MRVL to be put immediately in play.
The biggest "newly created" market cap fat cats in the space..... AVGO, NXPI, SWKS, QRVO are all in merger mode.
I expect someone to make a play for MRVL in 2015.
MRVL has 30% of their market cap in cash....with no debt.
Talk about an easy acquisition....
Does anyone have good reasons to think otherwise ?
AVGO earnings will move BRCM nicely. One way or another. Right now BRCM is trading about 9% below the current deal close.
The payout includes $17 billion in cash and $20 billion in equity
I really feel like MRVL will be bought. Probably in the next month.
I could be off base....but this merger will cause someone to push the button.
I posted this on 5/20/15
"I cant believe I like BRCM again. That has not been the case since 1999. Its actually pretty attractive in this environment. I would not be shocked by a merger with a bigger player. The company seems to be in a semi- sweet spot for the time."
I actually called this merger (not with AVGO specifically) about 2 weeks ago. I thought it would be a slower growing suitor actually but the writing was on the wall imo.
What are your thoughts on MRVL.. ?
BRCM and MRVL were the two I had been focusing on for being future merger / acquisition targets....
I am surprised how quickly the BRCM offer came....but the deal makes sense.
MRVL sure looks like juicy steak right now imo.....
You think its difficult to build out 2 billion in value at a 5 cap when you have a stock market cap of 2 billion ?
I think the all time lows are in place. Likely to trade sideways between $45 and $65 for the next 6 months imo. Metrics need to keep up. Squeezes are not the way long term holders want this to go up.
Its a 10-15 year play. Which is why an 800+ PE is currently where it trades.
Its not too crazy considering the market cap is within reason to achieve on a per store metric in a couple years if they ramp up new store openings.
Looking for a retest of $45 area before it makes considerable new highs tho.
No holding long or short. Sidelines.