The market certainly didn't like what it saw and heard from Microsemi's (NASDAQ:MSCC)
fiscal second quarter results, as seen in the nearly 10% selloff on
Friday. While weakness in the wireless sector is a concern and
Microsemi's valuation wasn't exactly undemanding, I think this may be
shaping up as a buy-the-dip opportunity for investors looking for good
below-the-radar GARP stories in semiconductors.
Microsemi is
looking to make significant content inroads in commercial aerospace and
satellites, while continuing to benefit from a strong position in
defense and a growing presence in FPGA. Add in the potential to leverage
its timing expertise into the auto and industrial automation verticals,
and there is worthwhile long-term potential here. I've changed little
in my model after this quarter, and my fair value remains in the
mid-$30's.
Read the full article here:
Microsemi Offers A Buy-The-Dip, But Wireless Is A Concern
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