Micrel, Inc. (NASDAQ:MCRL)

reinhs (54.63) Submitted: 6/27/2006 7:38:23 PM : Start Price: $8.97 MCRL Score: -1.32

Micrel is a fantastic but low hype semiconductor company that is smartly run with stable management that has a large personal stake in the company. Unlike most of the industry, they show insider buying and basically no net insider selling. They have done very well to manage costs and increase profit margins. The products they make require modest R&D (but still talented designers) compared to most of the rest of the semi industry. I think they are undervalued at prices less than $11 or so and have a great potential for growth over the next few years. They are diversified over many types of products and customers from a range of industries. Their products do not get integrated "into the main chip" as there is a push to make products smaller. They are bread an butter parts (but higher end) that most electronic devices just flat need and can't live without. They have good cash, no debt and their returns and margins are better than the competition.