With a very disappointing outlook for the next quarter and renewed worries about Maxim Integrated Products' (NASDAQ:MXIM)
ability, or lack thereof, Maxim shares are off significantly amidst
some broader renewed worries about the chip sector. This may be one of
those "buy the dip" opportunities that investors are always supposed to
be looking or waiting for, but the outlook is admittedly a reason to
pause. That's the problem with "buy the dip" opportunities - stocks
rarely sell off because they're forgotten or a sloppy block sale pushes
down the price; usually something pretty scary is going on in the
underlying business.
The sell-off here does look too steep, but I'm not in a rush to add this to the top of my buy list. When I last wrote about Maxim, I cited some concerns that the company may not diversify away from Samsung
as quickly or successfully as hoped, and that may be coming home to
roost. Still, value is value, and unless the outlook at Maxim really
crumbles over the next six to 12 months, these shares look 10% or more
undervalued.
Continue here:
Is This A 'Buy The Dip' Opportunity At Maxim Integrated Products?
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