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Marvell's (MRVL -15.6%) FQ2 miss isn't sitting well with Cowen: the firm thinks management...

Marvell's (MRVL -15.6%) FQ2 miss isn't sitting well with Cowen: the firm thinks management should have warned, and argues investors should wait for business to stabilize before buying. During its earnings call, Marvell partly blamed "increased competition" in the market for TD-SCDMA baseband chips (used in phones running on China Mobile's 3G network) for its miss - Marvell's main competitors in this space are Spreadtrum, Qualcomm, and MediaTek. (FQ3 guidance)
Comments (1)
  • I agree that the company should have warned. Missing the low-end of your guidance like that is definitely cause for a warn.

     

    That being said, I think that from purely a valuation standpoint, the stock is cheap at these levels. I wouldn't assign it a particularly high multiple (ex-cash) until the business stabilizes though.
    17 Aug 2012, 10:24 AM Reply Like
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