BrittanyFordham's  Instablog

The blog posting at the link below appeared at Forbes.com:

http://blogs.forbes.com/investor/2010/11/10/buy-these-small-caps-before-they-get-big/


Entire article at link above. Below is the portion on Magma:

"Magma develops software called electronic design automation (EDA), critical to the design of new semiconductor chips.  With semiconductor customers having returned to financial health and looking to design new chips that drive future growth, the environment for EDA purchases has improved.  Previous industry consolidation efforts have left customers at the mercy of a single, dominant vendor for each end market sphere, analog and digital.

"Having exited a period of significant investment, Magma is improving profits, presents a credible second source position to the dominant digital EDA vendor, and now offers a unique mixed-signal product bridging both markets and addressing the weaknesses of the incumbents. Both Magma and QLogic [also mentioned in the post] sell at a multiple of 11 times normalized earnings per share."

Disclosure: Long LAVA