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

Should Investors Buy PMC-Sierra Ahead Of Big Product Ramps?

Shares of storage and networking semiconductor company PMC-Sierra (NASDAQ:PMCS) have done reasonably well since I last wrote about the company in October. Up around 20%, the company has lagged acquisition-assisted LSI (NYSE:LSI), but matched Broadcom (BRCM) and outperformed Applied Micro (NASDAQ:AMCC). Analysts, though, are a little worse than lukewarm on the shares, with four holds and two underperforms at present.

In reading the sell-side research, it seems like analysts are concerned about going positive on PMC-Sierra ahead of meaningful ramps in PCIe flash controllers, 12G SAS, and OTN. While I find it odd that the normally overly-bullish sell-side is being cautious, investors don't seem to have the same issue. With the run in the...

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