Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Cavium Still Trying To Prove It Is More Than A Niche Specialist

(Editors' Note: This article covers a stock trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.)

Analysts and investors seem to be of two minds when it comes to companies with specialized or "niche" products. On one hand, these companies often have good market shares and strong margins, but at the cost of a smaller addressable market and the risk of competition from larger, generalist rivals. When it comes to Cavium (NASDAQ:CAVM), there is still active debate as to whether the company's efforts to enlarge and expand beyond its specialized multi-core network processor market will pan out.

I guess I would...

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