Mark Yagalla
Gold, currencies, macro, commodities

How Hittite's Disappointment Is A Buying Opportunity

Executive summary:

  • Weakness in military spending has been overshadowing Hittite Microwave's potential in LTE.
  • Look for margins to return to historical levels later this year and early 2015.
  • Shares remain cheap and trade at only 19 times next year's earnings.
  • The downside risk is mitigated by the company's pristine balance sheet and $472 million, or $15.41 a share in cash.
  • Using its historical P/E multiple, the price target is $68.


The semiconductor space is riddled with promising companies, most of which have nothing to do with the computer industry. Hittite Microwave (NASDAQ:HITT) happens to be one. Hittite is a compelling small cap play in the semiconductor space. Even for a sub $2 billion market cap company, Hittite...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details