Wednesday, April 18, 2018

Mellanox Improving Its Execution Just As Another Cycle Seems To Be Ramping Up

Although I suspect that Mellanox (MLNX) management would be loath to admit it, the involvement of Starboard has seemed to light a fire under them with respect to margin improvement and increased candor about the business. The margin improvements are particularly notable, as they have a disproportionate impact on valuation, and it increasingly looks like these improvements are coinciding with another up-cycle in the business. All of that is good news for shareholders, though these shares have had a good run of late relative to the semiconductor sector, and I wouldn't call the valuation strikingly cheap.

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Mellanox Improving Its Execution Just As Another Cycle Seems To Be Ramping Up

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