Helix Investment Research
Long only, special situations, contrarian, growth

MaxLinear: Progress Towards Sustainable Profitability Will Drive Shares Higher

Since its March 2010 IPO, MaxLinear (NYSE:MXL) has seen its share price fall by over 60% as the company has struggled to achieve sustainable profitability, even as its revenues have continued to grow, from around $10 million in 2007, to nearly $100 million in 2012.

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With sporadic profitability, MaxLinear's share price has fallen from its IPO price of $14 to $6.95 as of June 27, even with a nearly 39% rally over the past year. However, we believe that for new investors, shares of MaxLinear present a compelling opportunity at these levels. With meaningful EPS growth set for 2013 and 2014, as well as a pristine balance sheet, MaxLinear is stronger than it appears, and...

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