4-Star Stocks Poised to Pop: MIPS Tech
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, mobile-chip technologist MIPS Technologies (NAS: MIPS) has earned a respected four-star ranking.
With that in mind, let's take a closer look at MIPS' business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Sunnyvale, Calif. (1984)|
|Market Cap||$232 million|
|Trailing-12-Month Revenue||$76.7 million|
|Management||CEO Sandeep Vij (since January 2010)|
CFO William Slater (since November 2011)
|Return on Equity (Average, Past 3 Years)||25.3%|
|Cash/Debt||$107 million / $0|
|Competitors||AMD (NYS: AMD) |
ARM Holdings (NAS: ARMH)
Intel (NAS: INTC)
Sources: S&P Capital IQ and Motley Fool CAPS.
Earlier this month, gooski1 listed several of MIPS' positives: "Beaten down tech stock, excellent cash position with no debt, showed up on [Magic Formula screen] previously, link to cheap $100 tablet made in China based on Android."
Over the next five years, in fact, MIPS is expected to grow its bottom line at a brisk rate of 19% annually. That's faster than that of competitors like AMD (10%), ARM (15%), and Intel (11%).
CAPS member NJ7 elaborates on the bull case:
The starting point for my take on MIPS is that management has dramatically improved its competitive position by eliminating debt and accumulating cash. ... But the basis for dramatic growth is the new MIPS tablet, marketed for $99 with Ice Cream Sandwich. The tablet appears to stack up well to those of competitors to my non-techie eyes, and speculation on Chinese governmental support for the Loongson processors based on MIPS is also encouraging. If this can outdo Amazon's Kindle Fire, this could be a game changer. ... MIPS Technologies will be a strong company, but tablets will determine whether it will be a growing one.
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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Intel and Amazon and has bought calls on Intel. Motley Fool newsletter services have recommended buying shares of Intel and Amazon, as well as creating a bull call spread position in Intel. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.