Marvell shows strong fundamentals and is coming back to attractive prices.
According to recent financial statements, the company improves its business through rising sales and cost-efficient production. Margins are expected to gradually increase in 2015 and 2016, allowing the firm to pick its EBITDA up. The P/E ratio at only 17.8 times estimated benefits constitutes a great entry level for buyers. In addition, EPS forecasts are at $0.81 for this year and $0.86 for the next one.
The security follows a downward trend in the short term under the $15.19 resistance area, but in the mid-term, the trend still being neutral. The proximity of a strengthened support level and an ascending trendline should give the necessary push for a rebound in prices. Even if prices fall under the $14.15 daily support, the $13.5 level should represent a main obstacle for sellers.
Considering both technical and fundamental elements, the timing seems to be an appropriate one for opening long positions on Marvell. The target price could be the $15.19 resistance, or a potential of 6%. A stop loss order is suggested under $13.5.
Marvell Technology Group Ltd specializes in designing and marketing integrated communications and storage circuits intended for manufacturers of high-speed network equipment, hard disks, and consumer electronics. Net sales break down by area of application as follows:
- data centers (40.7%): artificial intelligence systems, data storage systems, Ethernet switches, servers, interconnection systems, etc.;
- enterprise networks (23.1%): routers, Ethernet switches, wireless access points, network equipment, workstations, etc. for campuses, small and medium-sized enterprises;
- telecom network infrastructures (18.3%): access multiplexers, Ethernet switches, optical transport systems, routers, wireless radio network access systems, etc.;
- consumer electronics (11.9%): broadband gateways and routers, game console systems, home data storage systems, home wireless access points, personal computer systems, printers and receiver terminals;
- automotive and industrial (6%): advanced driver assistance systems, autonomous vehicle systems, embedded network systems, industrial Ethernet switches, video surveillance systems.
Net sales are distributed geographically as follows: the United States (11.7%), China (42%), Malaysia (6.6%), Thailand (6.6%), Singapore (5.6%), Taiwan (4.9%), Japan (4.4%), Finland (3.2%), Philippines (2.9%) and other (12.1%).
MARVELL TECHNOLOGY GROUP LTD 
