MRVL

Marvell Technology Group Ltd

TMT, Event Driven/Special Sit


Presented:06/09/2016
Price:$10.20
Cap:$5.15B
Current Price:$79.41
Cap:$68.78B

Presented

Date06/09/2016
Price$10.20
Market Cap$5.15B
Ent Value$5.07B
P/E RatioN/A
Book Value$9.91
Div Yield0.02%
Shares O/S504.83M
Ave Daily Vol4,525,918
Short Int1.33%

Current

Price$79.41
Market Cap$68.78B
Marvell Technology Group Ltd. engages in the business of providing semiconductors to high-performance application-specific standard products. The company focuses on the development of complex System-on-a-Chip devices leveraging extensive technology portfolio of intellectual property in the areas of analog, mixed-signal, digital signal processing, and embedded and stand alone integrated circuits. Its product portfolio includes devices for data storage, enterprise-class Ethernet data switching, Ethernet physical-layer transceivers, mobile handsets, connectivity and other consumer electronics. The company was founded by Sehat Sutardja, Weili Dai and Pantas Sutardja in January 1995 and is headquartered in Hamilton, Bermuda.

Publicly traded companies mentioned herein: Broadcom Limited (AVGO), Marvell Technology Group Ltd (MRVL), Micron Technology Inc (MU), Qorvo Inc (QRVO), Skyworks Solutions Inc (SWKS)

Highlights

The presenter is long shares of Marvell Technology Group (MRVL) and thinks the risk/ reward and entry point are attractive at ~$10 per share. He explained the company’s checkered past and challenging 2015, which led to the firing of the husband-and-wife management team this past April (2016). The stock appears to be mispriced, but with just over $2.5 billion of cash and short-term investments on the balance sheet and an activist investor pushing for further change the downside should be limited. On the upside, MRVL stock could appreciate 30% or more as there is a “self-help”, margin expansion opportunity, and there is optionality around the potential for the fabless semiconductor company being acquired.

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Idea Discussion

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