MaxLinear In A Challenging Transition, But The Upside Is Interesting

Microsemi (NASDAQ:MSCC) has been a good stock for me, generating a double-digit annualized return for the seven-plus years I've owned it, and I like investing on the basis of patterns – figuring out a constellation of attributes that have worked for me in the past and finding them again. With that in mind, I think MaxLinear (NYSE:MXL) might be a name to look at a little more closely.

MaxLinear is not exactly “the next Microsemi,” and the products/markets served are quite different, but here is another growth-through-acquisition story that is underpinned by some solid technological / design capabilities and a desire to grow the addressable market by applying those capabilities to new markets. If MaxLinear can deliver on these opportunities and generate high single-digit revenue growth with improving margins, a fair value range in the mid-to-high $20's seems fair, not including the potential that MaxLinear itself could be a target.

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MaxLinear In A Challenging Transition, But The Upside Is Interesting