1-Star Stocks Poised to Plunge: MaxLinear?

Before you go, we thought you'd like these...
Before you go close icon

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, fabless semiconductor company MaxLinear (NYS: MXL) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at MaxLinear and see what CAPS investors are saying about the stock right now.

MaxLinear facts

Headquarters (Founded)Carlsbad, Calif. (2003)
Market Cap$235.0 million
IndustrySemiconductors
Trailing-12-Month Revenue$82.0 million
ManagementCo-founder/Chairman/CEO Dr. Kishore Seendripu
Co-founder/Chief Technical Officer Dr. Curtis Ling
Trailing-12-Month Return on Equity(26.1%)
Cash/Debt$81.3 million / $5.0 thousand
CompetitorsAnalog Devices
Broadcom
NXP Semiconductors

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 32% of the 25 members who have rated MaxLinear believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star BlacknGold, succinctly summed up the bear case for our community:

This is another "almost there!" company. But I just don't see it. MaxLinear is worth $2.65 per share using shareholders' equity. It may very well turn a profit within the next year, but one miss on the lofty expectations of analysts will crush shares. It is virtually inevitable.

If you want market-thumping returns, you need to protect your portfolio from any undue risk. Luckily, we've found another growth play we are incredibly excited about -- excited enough to dub it "The Only Stock You Need to Profit From the NEW Technology Revolution." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow theTrackPoisedToCAPS account.

The article 1-Star Stocks Poised to Plunge: MaxLinear? originally appeared on Fool.com.

Fool contributorBrian Pacamparaowns no position in any of the companies mentioned.Motley Fool newsletter serviceshave recommended buying shares of NXP. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Fool'sdisclosure policyalways gets a perfect score.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners