$19.25 0.10 (+0.52%)
11/6/2009 4:00 PM

Cavium Networks, Inc. (CAVM)

CAPS Rating: 1 out of 5

Provider of highly integrated semiconductor processors that enable intelligent networking, communications and security applications.

Current Price $19.25 Mkt Cap $802.15M
Open $19.16 P/E Ratio 338.50
Prev. Close $19.15 Div. (Yield) N/A (N/A)
Daily Range $18.86 - $19.49 Volume 573,258
52-Wk Range $7.14 - $22.26 Avg. Daily Vol. 663,000

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50 Outperform
27 Underperform
 

All-Star Members

17 Outperform
10 Underperform
 

Wall Street

10 Outperform
2 Underperform
 

Top CAVM Bull/Bear Pitches

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mrindependent (98.79)
Submitted July 09, 2009

Cavium networks makes "highly integrated semiconductor processors". This tiny company has generated rapid sales growth during the past 5 years, but has not been equally successful at generating profits. The result is that Cavium is a money… More

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CAVM VS S&P 500 (SPY)

Recent Community Commentary

Read the most recent pitches from members about CAVM.

Recs

1
Member Avatar mrindependent (98.79) Submitted: 7/9/2009 9:45:59 AM : Underperform Start Price: $16.60 CAVM Score: +5.95

Cavium networks makes "highly integrated semiconductor processors". This tiny company has generated rapid sales growth during the past 5 years, but has not been equally successful at generating profits. The result is that Cavium is a money losing company selling at 5.3 times book value in an industry with significant overcapacity.

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Recs

0
Member Avatar ddebo44 (52.10) Submitted: 4/24/2008 10:20:09 PM : Outperform Start Price: $21.40 CAVM Score: +10.26

The technology sector continues to be hot. This company deals overseas where emerging markets and upgrading continue.

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Recs

1
Member Avatar TechGooRoo (30.27) Submitted: 11/2/2007 12:43:23 AM : Underperform Start Price: $28.98 CAVM Score: +7.64

Let's review some vital data:

- Market cap: $1.15B
- Revenue for the trailing 12 months is about $48M.

That's right, they're currently trading at 24x revenue. That's simply absurd. If some 800lb. hardware company wanted to buy Cavium, they'd almost certainly wait until it dropped at least to the 10x range, unless it was a very strategic acquisition and there was competition.

Even if you assume similar revenue growth for the next quarter, to $16M, that's $54M for all of 2007, and still 21x revenue.

3rd quarter was the first quarter where Cavium was profitable. They made $186K of profit from product, the rest was from interest income on the $100M they received when they went public in May. That's $1.3M in interest income.

Given the Q3 net income of $1.31M, they'd have to double their net income for the next three quarters to gain a TTM P/E 58.

While Cavium looks like a fine company, the stock price is way inflated.

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Leaderboard

Find the members with the highest scoring picks in CAVM.

Score Leader

4st2

4st2 (98.55) Score: +73.87

The Score Leader is the member with the highest score across all their picks in CAVM.

Top
Pick 		Member Name Member
Rating 		Start
Date 		Call Time
Frame 		Start
Price 		Stock
Gain 		S&P
Gain 		Score Commentary
4st2 98.55 1/9/2009 Outperform NS $9.95 +93.47% +19.60% +73.87
PhillyDan 90.03 11/28/2008 Outperform 1Y $10.23 +88.17% +24.12% +64.05
megatrade < 20 3/3/2008 Outperform 3W $14.56 +32.21% -16.14% +48.36
wham101 < 20 5/21/2007 Outperform 1Y $17.74 +8.51% -25.77% +34.28
Subbzee 71.01 5/11/2007 Outperform 3Y $17.79 +8.21% -24.68% +32.89
rsfool2000 88.02 4/1/2008 Outperform NS $16.64 +15.69% -16.89% +32.58
cverduzco1 89.66 3/24/2008 Outperform NS $16.78 +14.72% -17.81% +32.53
SSPX2 31.87 5/1/2009 Outperform NS $12.46 +54.49% +23.80% +30.69
Rickenbacker1 < 20 5/7/2007 Outperform 3M $18.59 +3.55% -24.93% +28.48
UGURTEMMUZ28 22.39 7/28/2008 Outperform NS $17.06 +12.84% -11.92% +24.76
View Complete Scorecard »

Wall Street

See what the Wall Street professionals think, according to their public statements and filings.

Member Name Member
Rating		 Start
Date		 Call Time
Frame		 Start
Price		 Stock
Gain		 S&P
Gain		 Score End Date Commentary
TrackGCResearch < 20 10/28/2009 Underperform NS $19.53 -1.43% +1.72% +3.15
TrackAurigaU.S.A 26.23 10/2/2009 Outperform NS $20.30 -5.17% +5.01% -10.18
TrackWMBlair 39.74 9/15/2009 Outperform NS $21.78 -11.62% +2.04% -13.65
TrackRothCapital 75.81 9/8/2009 Outperform NS $21.25 -9.41% +4.51% -13.92
TrackBarclaysCap 86.02 8/18/2009 Outperform NS $18.99 +1.37% +8.90% -7.53
TrackPiperJaff 80.38 2/6/2009 Outperform NS $10.38 +85.45% +28.47% +56.98
TrackMerriman < 20 7/28/2008 Outperform NS $17.06 +12.84% -11.92% +24.76
TrackNeedham < 20 1/2/2008 Outperform NS $24.06 -19.99% -24.03% +4.03
TrackLehmanBros 76.60 11/27/2007 Outperform NS $25.00 -23.00% -20.81% -2.19
TrackNeedham < 20 6/11/2007 Outperform NS $20.00 +62.60% +3.27% +59.33 10/5/2007 @ $32.52
TrackDeutscheSec 89.50 6/11/2007 Outperform NS $20.98 -29.22% -17.21% -12.01 9/4/2008 @ $14.85
TrackJMP < 20 6/11/2007 Outperform NS $20.98 -8.25% -24.96% +16.71

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