MACOM (MTSI), an RF/microwave designer and manufacturer for wireless and wired applications, is about to enter a virtuous circle: Management is promotional; the business is strengthening; and the analyst community is convinced of the turn. After falling 10% from its 2012 IPO price, the stock has reached an inflection point with a risk/reward that favors a 15 to 35% share appreciation over the next 6 months with additional opportunities for active traders to take advantage of easy to spot attractive entry points along the way.
There are catalysts galore:
- Strengthening end markets
MACOM sells into automotive space, primarily GPS and driver's assistance, with Ford the key customer. Automotive has been so strong that MACOM made it a...