Wednesday, July 29, 2015

Seeking Alpha: Microsemi Executing Its Model To Good Effect

Going its own way seems to still be doing some good for Microsemi (NASDAQ:MSCC), as this consistently off-beat semiconductor company appears to be better-positioned than many of its rivals for the near term. With good leverage to relatively healthy commercial aerospace and defense end markets and modest exposure to weaker areas in industrial, PCs, or handsets, Microsemi should have a decent backdrop against which to continue driving long-promised margin improvements.

Although I don't personally value share buyback announcements all that highly, Microsemi has been improving its cash flow generation and continues to trade below what I believe to be its fair value. Given the stock's strong run of relative outperformance, though, the contrarian call may no longer be to prefer Microsemi, but rather to take another look at names like Qorvo (NASDAQ:QRVO), Atmel (NASDAQ:ATML), and Linear (NASDAQ:LLTC) that haven't done as well.

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Microsemi Executing Its Model To Good Effect

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