MIPS Technologies, Inc. (NASDAQ:MIPS)

CAPS Rating: 3 out of 5

The Company is a provider of industry-standard processor architectures and cores for digital consumer and business applications.

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Member Avatar chemicaldunk (40.11) Submitted: 5/9/2012 4:24:01 PM : Underperform Start Price: $6.24 MIPS Score: -5.91

I do not believe this stock will outperform the S&P.

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Member Avatar dion2727 (44.37) Submitted: 4/12/2012 5:24:01 PM : Outperform Start Price: $6.54 MIPS Score: +2.46

should be bought by component firms posturing for a competitive supplier position in the mobile,ipad,ipod,and game products.with a very large patent assemblage it is a potentially an outstanding investment with a decent cash position and hardly any debt.

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Member Avatar amawesdude (< 20) Submitted: 1/16/2012 10:07:41 PM : Outperform Start Price: $5.50 MIPS Score: +14.81

They have a wide product base ranging from tvs, to gps devices, to wireless routers, to tablets and beyond. They have a solid line up of new products being released over the course of the next year. Not to mention, their debt to cash ratio is ridiculous (In a good way). They are positioned for a few great years ahead.

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Member Avatar NJ7 (27.83) Submitted: 12/21/2011 10:27:48 PM : Outperform Start Price: $4.07 MIPS Score: +51.25

The starting point for my take on MIPS is that management has dramatically improved its competitive position by eliminating debt and accumulating cash. Its strong base in many different types of products means that it will be a strong corporation for a long time to come. But the basis for dramatic growth is the new MIPS tablet, marketed for $99 with Ice Cream Sandwich. The tablet appears to stack up well to those of competitors to my non-techie eyes, and speculation on Chinese governmental support for the Longsoon processors based on MIPS is also encouraging. If this can out do Amazon's Kindle Fire, this could be a game changer. The fact that a limited number of tablets reportedly sold out in 72 hours is promising. In this case, product reviews will likely determine whether customers give MIPS a chance. MIPS Technologies will be a strong company, but tablets will determine whether it will be a growing one.

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Member Avatar BigFatBEAR (31.46) Submitted: 10/26/2011 11:44:04 PM : Outperform Start Price: $4.49 MIPS Score: +29.21

Hopping in with dwot, tenmiles, and translator. Near-term cloudy, but longer-term bullish with no debt and a history of bubbling up quite rapidly versus the market.

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Member Avatar TheBlindCat (29.45) Submitted: 9/8/2011 4:51:49 AM : Outperform Start Price: $5.35 MIPS Score: +9.15

This stock is so beaten down that, despite being a huge fan of ARM, willing to take a flyer. Cash on hand looks good, expansion in the Chinese market has been touted by some and IP has value in the current litigious environment.

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Member Avatar kcain71 (77.72) Submitted: 9/2/2011 1:28:28 AM : Outperform Start Price: $5.30 MIPS Score: +9.20

Highly undervalued at this point

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Member Avatar TMFDeej (99.37) Submitted: 8/28/2011 10:12:46 AM : Outperform Start Price: $5.30 MIPS Score: +10.27

New target of activist Starboard Value.

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Member Avatar cibient (< 20) Submitted: 8/9/2011 4:32:12 PM : Outperform Start Price: $4.00 MIPS Score: +45.39

New entrant to the Magic Formula top 50 screen. Interesting how the stock fell to new lows (macro market trends aside) even as the company is raking in cash and now has 50% of it's market cap in balance sheet cash.

On the flip side, looks like there are some issues with market share/revenue, and lack of insider buying.

But the stock is clearly in value territory now.

MagicDiligence.com stats:

Results for ticker 'MIPS' (MIPS Technologies, Inc.):
Earnings Yield:   20.6%
MFI Return on Capital:   425.8%

MagicDiligence Research for 'MIPS':

Research Available for MIPS! (full membership required - upgrade here)

Instant Diligence:

The Earnings Yield of 20.6% is Very High.

The MFI Return on Capital of 425.8% is Suspiciously High (needs additional research).

Near-term Financial Health appears to be Excellent. The current ratio is 6.99.

Calculations:

(for quarter ended 2011-03-31)
Market Cap   =   Stock_Price * Shares
   =   4.14 * 54.89
   =   227.24

Excess Cash   =   Cash - MAX(0; (Current Liabilities - Current Assets + Cash))
   =   108.35 - MAX(0; (16.32 - 114.11 + 108.35))
   =   97.79

Enterprise Value   =   Market Cap + Total Debt - Excess Cash
   =   227.24 + 0.00 - 97.79
   =   129.45

MFI Invested Capital   =   Total Assets - Goodwill - Intangibles - Current Liabilities + Short Term Debt - Excess Cash
   =   123.11 - 0.56 - 2.18 - 16.32 + 0.00 - 97.79
   =   6.26

Earnings Yield   =   Operating Earnings / Enterprise Value
   =   26.66 / 129.45
   =   0.206 (20.6%)

MFI Return on Capital   =   Operating Earnings / MFI Invested Capital
   =   26.66 / 6.26
   =   4.258 (425.8%)

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Member Avatar easy2be1 (< 20) Submitted: 8/8/2011 6:52:57 PM : Underperform Start Price: $4.01 MIPS Score: -43.79

Typical example of disconnect between a very valuable technology and a miserable management

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Member Avatar KimLanners (< 20) Submitted: 8/5/2011 12:19:19 PM : Outperform Start Price: $4.20 MIPS Score: +41.19

tech

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Member Avatar TMFZahrim (49.04) Submitted: 7/27/2011 2:09:45 PM : Outperform Start Price: $7.56 MIPS Score: -15.87

Would you rather pay a premium for growth that has already happened to a large degree, or buy into future growth at a discount? Being a Rule Breaker at heart, I'm a much bigger MIPS fan than ARM booster at this point.

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Member Avatar siri22 (< 20) Submitted: 7/24/2011 6:21:36 AM : Outperform Start Price: $7.77 MIPS Score: -16.73

should have bought in under 6

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Member Avatar johnybutts (< 20) Submitted: 7/13/2011 10:55:40 AM : Outperform Start Price: $6.91 MIPS Score: -6.64

From TMF frontpage.
No debt, already profitable, subtract out cash for an 11x trailing P/E. Things could get good.

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Member Avatar maoscar (< 20) Submitted: 6/8/2011 3:43:32 PM : Outperform Start Price: $6.71 MIPS Score: -7.43

what is so bad about this company

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Member Avatar TruffelPig (< 20) Submitted: 4/28/2011 9:10:14 PM : Outperform Start Price: $10.80 MIPS Score: -39.29

Wohoo, as soon as I click the thumb up, it is having a big bad earning surprise......25% down and a bad bad outlook. But it fell so much it probably will go up a bit. I lost real money on this one, wohoo.....

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Member Avatar jasenj1 (45.68) Submitted: 4/28/2011 10:12:21 AM : Outperform Start Price: $8.31 MIPS Score: -20.34

Pick on dip.

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Member Avatar NYZ93 (< 20) Submitted: 4/27/2011 2:21:22 PM : Outperform Start Price: $8.11 MIPS Score: -19.04

Time to BUY!!!

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Member Avatar tenmiles (99.97) Submitted: 4/27/2011 10:45:44 AM : Outperform Start Price: $7.91 MIPS Score: -17.30

Buying the selloff sub $8 for longer term play

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Member Avatar kumquatmay (< 20) Submitted: 4/14/2011 5:51:19 PM : Outperform Start Price: $10.86 MIPS Score: -42.37

MIPS has good revenue and earnings growth. It is well-situated in many growth markets. MIPS licenses cores to System On a Chip (SOC) vendors. SOC vendors then sell chips for mobile applications (i.e. mobile baseband processors ....most 4G baseband chips have a MIPS core). The company doesn't just design cores for mobile. MIPS licenses multi-threading, multiprocessor, 64-bit RISC cores (these are fast, cheap, low power cores) to Cavium, Broadcom and other SOC companies not in the mobile space. These vendors develop chips for networking, storage and the connected home. Processing power is processing power regardless of where it is employed. As mobile devices become faster, cheaper and use less power, the opportunity for MIPS in the mobile market is immense. As mobile SOC vendors continue to license MIPS cores for the design and production of chips, the company's income streams in mobile will continue to grow.

Given the desperate tone of some of the misguided stock-bashing, my sense is that a short squeeze on the stock may be imminent.

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