Maxim Integrated Products, Inc. (NASDAQ:MXIM)

high yield

Profile
Maxim Integrated Products Inc.
120 San Gabriel Drive
Sunnyvale, CA 94086
United States - Map
Phone: 408-737-7600
Fax: 408-470-5841
Website: www.maxim-ic.com

Details
Index Membership: Nasdaq 100
Sector: Technology
Industry: Semiconductor - Broad Line
Full Time Employees: 9,200

Business Summary

Maxim Integrated Products, Inc. engages in the design, development, manufacture, and marketing of various linear and mixed-signal integrated circuits/analog circuits worldwide. It also offers a range of high-frequency design processes and capabilities that could be used in custom designs. The company primarily serves industrial, communications, consumer, and computing markets. It markets its products through a direct-sales and applications organization, as well as through its own and other unaffiliated distribution channels. The company was founded in 1983 and is headquartered in Sunnyvale, California.

***All above information from YAHOO FINANCE***

They make the analog devices that interface digital processors to the real world -- as processors become cheaper and embedded in ever more consumer, industrial, and other goods, Maxim's devices will increasingly be in demand.

Decent dividend with a good yield.

I like the dividend and growth potential.

No debt a lot of cash high yield won't go down as much over the next 2-3 months and will come back strong

Maxim Integrated Products designs, develops, manufactures and markets a broad range of linear and mixed-signal integrated circuits. The company also offers a range of high-frequency process technologies and capabilities that can be used in custom designs.Electronic signals are classified as linear, also known as analog, or digital. This creates three classes of semiconductor products: linear, digital, and mixed-signal, which combines linear and digital functions on one integrated circuit. Maxim targets the linear and mixed signal markets. Their products reach four major end-markets. They serve the Industrial, Communications, Consumer, and Computing markets. Industrial includes the automotive and medical industries. The Communications market includes networking and telecommunications. Cell phones, digital cameras, and GPS devices are included in the Consumer market. They also serve the Computing market through desktops and notebooks. The company produces their own wafers and also utilizes third-party silicon foundries to produce wafers.

Cheap - valuation at/or near net cash. See this article:
http://www.fool.com/investing/general/2008/12/11/a-government-guarantee-that-youll-lose-money.aspx

No debt. Profitable. 7.2% yield. What's not to like, exactly?

Disclosure: I own this stock in real life.

Chosen to be a part of the High Yield Portfolio strategy. Originally created by Fool UK's Stephen Bland (TMFPyad) in November 2000, the High-Yield Portfolio (HYP) strategy invests in a diversified group of 15 blue chip dividend-paying stocks with strong dividend cover, relatively low debt, and a history of increasing dividend payouts. The holding period is theoretically forever -- unless a stock is bought out or cuts its dividend.

Sound crazy? Well, the point of the portfolio is not necessarily for capital gains (although that's certainly a bonus), but to produce increasing amounts of annual dividend income. Daily price fluctuations matter not -- it's the income that matters -- so it removes emotional trading from the picture entirely. Doubters should note that the original UK HYP from November 2000 returned 68% through December 2007 (while the FTSE 100 lost 8%). What's more, the portfolio income payout increased 29% over that seven year period, from 3,451 pounds to 4,462 pounds per year.

7% return just based on dividends. This gives the stock a real reality check value.

Low debt, high yield

$2bn high end analoc IC company struggling a bit with margins and market share since 2003 or so. The stock was hit due to that and stock accounting restatements followed by NASDAQ delisting. Down to $19.8 from high of 55 in 2004 The restatement is almost complete, re focus of the company to improve model and market penetration is in place. It has the broadest set of high end analog digital and mix signal ICs I have seen and higher margins than TI. I think even with the conservative $1.06-1.26 depending on who you ask estmated EPS in 2007 the PE ratio at $19.8 is low.

With the company's legal woes only months away from being resolved, MXIM is ready to bounce back from it's depressed stock price. The next year should be weak as the entire industry expects weak demands, but expect MXIM to be ready when demand starts picking up. It appears that gross margins should maintain as the company has reinitiated it's relationship with distributors, allowing them to sell to both high and low volume customers. The latter seems to be key in shoring sells of high gross margin catalog parts.

Looks like they are making some changes and cutting costs.

Ugly, beaten up stock that has been relentlessly punished and delisted by Wall St. for options back dating issues. Stock is so ugly that very little down side remains, and very little positive news will give it upward movement. Dividend is roughly 4%. Deep value play that should do OK as it crawls out of the accounting pit it has dug for itself.

Severely oversold on future guidance.

Solid balance sheet. Options issues are non-cash related.

undervalued leader in analog tech
uncertainty will disappear after filing of past due financials
will get re-listed