Post by Admin on Aug 10, 2016 13:56:52 GMT -5
finance.yahoo.com/m/9aeabfcc-5916-309c-9dd5-a5fb7143caa2/ss_raging-capital-reveals-new.html
"Cavium Inc. (NASDAQ:CAVM) is a provider of semiconductor processors which Raging Capital believes is “trading (at) a bargain valuation.” The semiconductor maker has lost 25% of its market value since the beginning of 2016, as “investors have punished CAVM due to short-term worries about the exact timing of the ramp up of its latest network processor and the slow initial uptake of the ARM-server market.” Furthermore, Mr. Martin and his team reckon that the network processor business offers “a solid foundation of value”, while Cavium’s products in the pipeline provide opportunities for “home-run upside potential.”
In mid-July, Cavium agreed to acquire storage connectivity chip maker QLogic Corporation (NASDAQ:QLGC) in a cash-and-stock deal valued at approximately $1.36 billion. Wall Street analysts were struggling to see the strategic rationale behind the deal, viewing the acquisition as growth and margin dilutive. Under the terms of the agreement, QLogic shareholders are set to receive $11.00 in cash and 0.098 shares of Cavium per QLogic share. QLogic is known for its Fibre Channel (FC) adapters used in cloud-storage technology. Ken Fisher’s Fisher Asset Management acquired a new stake of 98,928 shares of Cavium Inc. (NASDAQ:CAVM) during the June quarter."
"Cavium Inc. (NASDAQ:CAVM) is a provider of semiconductor processors which Raging Capital believes is “trading (at) a bargain valuation.” The semiconductor maker has lost 25% of its market value since the beginning of 2016, as “investors have punished CAVM due to short-term worries about the exact timing of the ramp up of its latest network processor and the slow initial uptake of the ARM-server market.” Furthermore, Mr. Martin and his team reckon that the network processor business offers “a solid foundation of value”, while Cavium’s products in the pipeline provide opportunities for “home-run upside potential.”
In mid-July, Cavium agreed to acquire storage connectivity chip maker QLogic Corporation (NASDAQ:QLGC) in a cash-and-stock deal valued at approximately $1.36 billion. Wall Street analysts were struggling to see the strategic rationale behind the deal, viewing the acquisition as growth and margin dilutive. Under the terms of the agreement, QLogic shareholders are set to receive $11.00 in cash and 0.098 shares of Cavium per QLogic share. QLogic is known for its Fibre Channel (FC) adapters used in cloud-storage technology. Ken Fisher’s Fisher Asset Management acquired a new stake of 98,928 shares of Cavium Inc. (NASDAQ:CAVM) during the June quarter."