Marvell Technology Group Ltd. (NASDAQ:MRVL)

Great Mobile prospects in asia, strong revenue and financial history. Was trading around $13 a few months ago before losing a patent lawsuit which seems to be a result of a questionable jury.

positive surprise

Einhorn

Oversold. Buybacks.

EV/FCF is 4.5 on this one. Four. Point. Five. For a 2.5% dividend and a 14% growth rate, I'll pay that any day of the week, and twice on Mondays. (Market's closed Sunday).

Hurting from relationship with RIM but forming ventures with other Telecoms, moving into SSD and strong financials, ownership and dividend are all pointing in right direction

Attractive at this price. Dividend payout ratio of 8% leaves plenty of room to grow.

Solid company with competitive technology. Market over reaction to soft quarter. Buying opportunity

Einhorn

I'll admit that I'm just following Einhorn on this one.

I find that he and I line up well philosophically on a lot of investment ideas and apparently he had some commentary in his recent investor level about how undervalued this company is.

I'm green thumbing this more as a tracking position so that I don't lose track of this idea. I want to do some research of my own to decide if this is an idea that I want to pursue with real money or not.

Good entry price.

Morninstar 5 star rating fair val of 20

no debt
increase in div $0.06 paid in July
rev.increase 7%
ggaap net income $95 M. eps of $0.23
free cash flow &178 M.22% of rev

Supreme intuition

http://www.fool.com/investing/general/2012/02/24/this-ceo-wants-to-multiply-a-trillion-dollar-mark.aspx

In the immortal words of Kelly Clarkson, what doesn't kill you makes you stronger. Marvell is coming out of this setback with flying colors, ready to capitalize on market share shifts, renewed Chinese smartphone interest, and the proliferation of smart, Internet-connected consumer electronics. "The future is everything smart, smart TV, smart set-top boxes, smart everything, smart appliances, smart -- whatever it is that you want," Sutardja said. "Everything that you have in the smartphones, multiply that by many times performance to fit in the display size of a TV."

Chips to drive the mobile revolution

chart show eventual breakout.

Magic Formula screener stock. Still a growth stock, along with tons of balance sheet cash with no debt.

On another note, semi-related stocks are now the largest industry in my portfolio but most of them have huge cash piles, ready to weather a downturn.

Results for ticker 'MRVL' (Marvell Technology Group Ltd.):
Earnings Yield:   12.3%
Tangible Return on Capital:   112.1%

MagicDiligence Research for 'MRVL':

No research available.

Instant Diligence:

The Earnings Yield of 12.3% is High.

The Tangible Return on Capital of 112.1% is Very High.

Near-term Financial Health appears to be Excellent. The current ratio is 4.91.

Calculations:

(for quarter ended 2011-10-31)
Market Cap   =   Stock_Price * Shares
   =   13.90 * 613.50
   =   8527.00

Excess Cash   =   Cash - MAX(0; (Current Liabilities - Current Assets + Cash))
   =   2424.70 - MAX(0; (661.77 - 3247.51 + 2424.70))
   =   2424.70

Enterprise Value   =   Market Cap + Total Debt - Excess Cash
   =   8527.00 + 0.00 - 2424.70
   =   6102.30

Tangible Invested Capital   =   Total Assets - Goodwill - Intangibles - Current Liabilities + Short Term Debt - Excess Cash - Minority Interest
   =   5867.38 - 2009.66 - 102.43 - 661.77 + 0.00 - 2424.70 - 0.00
   =   668.82

Earnings Yield   =   (Operating Earnings - Minority Interest) / Enterprise Value
   =   (749.86 - 0.00) / 6102.30
   =   0.123 (12.3%)

MFI Return on Capital   =   Operating Earnings / Tangible Invested Capital
   =   749.86 / 668.82
   =   1.121 (112.1%)

6x fcf. storage disk drive maker. buybacks. 2.5 bln in cash. no debt. Einhorn bought in his Sep 2011 letter.