Todd,
Mylex Corporation designs input/output (I/O) and storage management computer peripherals. The company makes disk array controllers, system boards, network interface cards, and proprietary supporting software and firmware, which are used on personal computers,workstations, and servers. Its disk array controllers use RAID (redundant array of
inexpensive disks) technology that, combined with storage devices, provide high-performance, fault-tolerant data storage. Mylex markets its products to IBM, Digital Equipment Corp., and Hewlett-Packard, distributors such as Merisel, Ingram Micro, and Tech Data, and value-added resellers.
It has a web site at mylex.com there is also a thread here.
The stock is closed at 11.875 on Friday. It has traded in the range of 10 - 27.4 during the last 52 weeks. The earning estimate for 96 is 90 cents and for 97 $1.24 (fiscal year ends in Dec.). Current ratio is close to 7.0. Book value is $4.8. All 7 analysts rate a 'buy' (Barron's listed MYLX among the highest rated stocks almost every week recently.) Zacks showed a long term growth rate of 32%.
I think the company is fundamentally strong and has a good growth potential. However the stock has been doing very badly. The only concern I have is that those analysts may have not updated on this one for some time though they know business is not good. Probably tax-selling added to the decline. This is just my guess to understand the price drop of the stock. I think it might be wise to wait until the bad news comes out (as in the case of NM). Well, I may also miss the opportunity. That's investing.
Hope you'll have a look at it.
Jack. |
