Ashraf Eassa
Long/short equity, contrarian, independent research, tech

QLogic: Significant Opportunity In Light Of Management Shake-Up And Emulex M&A Chatter

I last wrote about QLogic (NASDAQ:QLGC) several months ago when shares were trading at the ~$9.50 level. At the time, I believed that shares could nearly double with downside risk capped significantly in light of a cash-rich, cash-flow positive business that was poised to break-out once the secular pressures in the enterprise segment subsided. The thesis, today, stands half correct - shares appear to have a hard floor in the mid $9 range, but following a brief run to the $12 level following an excellent earnings report, the shares remain stuck in this range. I believe that the weakness is short term and that there exist several key upside catalysts that, in light of the still very limited...

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