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Technology Stocks : Semi Equipment Analysis

SOXX 348.67

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4:00 PM EST

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To: Donald Wennerstrom who wrote (56834)	7/10/2012 2:11:27 PM
From: Return to Sender	5 Recommendations Read Replies (3) of 95756

SNIP: Marvell Technology (Nasdaq: MRVL ) is not the biggest fan of the year 2012. The company is trading near a 52-week low and has had a year-to-date return of -20.5%. Why would such a tremendous semiconductor manufacturer suffer in the golden age of technology? Because some bozos think smartphone sales are winding down. I don't really want to get in that argument, but let's say two things: (1) No they aren't. (2) Tablets. Marvell trades at just under eight times forward earnings. Eight times forward earnings for a company that sells its products to a sector that is projected to grow more than 20% in 2014. Many semiconductors have been hurt this year, but Marvell is leading the downhill race in stock price. Competitor Texas Instruments (Nasdaq: TXN ) is expecting a sharp decrease in EPS for 2012, and it holds a forward P/E of 12.3. The company will see similar growth to Marvell in the following years, but you get my point. While hard-drive sales are admittedly slowing, Apple and Samsung are selling 10 gazillion products per nanosecond (no citation available on that figure, rough estimate). And yes, Marvell sells to both of those companies. All things considered, Marvell is a victim of market stupidity, not poor management. fool.com Anyone else looking at MRVL besides me? I am not going in yet but seriously I agree with the above analysis. It's just that I believe the market is headed lower until August at the soonest. Maybe not finding a bottom until October. Even the weekly chart on MRVL is oversold: RtS

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