Cavium Message Board - Msg: 30625164

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Technology Stocks : Cavium

CAVM 86.23

0.0%

Jul 9 5:00 PM EST

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To: Kirk © who wrote (7)

6/17/2016 9:48:12 AM

From: The Ox

of 11

Combined market caps are roughly $3.5 billion and together they will have sales just under $1 billion it appears. 2017 eps estimates are roughly $2.50 or so for the new combination. 16 PE seems "fair" at this stage based on the $40/CAVM share price at the moment.

Unless there are some synergies that are not very obvious at this stage, I can see why management would want this merger but I'm not sure that shareholders are going to be rewarded in any quick fashion. QLGC looks like it will dilute the trajectory of CAVM in the short run. With QLGC's $4+ per share in cash, it's not an expensive purchase, IMO.

http://stockcharts.com/freecharts/gallery.html?qlgc

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