The annoying thing about watchlists and "waiting for pullbacks" is
that you have to be ready and willing to pull the trigger when they do
happen. More often than not, whenever a growth stock pulls back
significantly and actually looks like it sports a reasonable valuation,
there are numerous analysts out in print harping on whatever bad news
drove the stock down in the first place.
That brings me to Cavium (CAVM),
a very interesting specialty networking processor company. The market
gave investors two cracks at this stock below $25 in just the last six
months, and while I would not dismiss or ignore competition from Intel (INTC), Broadcom (BRCM), Freescale (FSL)
and others, I believe Cavium is well-positioned to deliver some rather
remarkable growth in the coming decade. The only problem is that most of
the Street things so too now, and even robust growth expectations
barely drive a fair value above today's price.
Follow this link for the full article at Seeking Alpha:
Cavium Is Great, But So Are The Expectations
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