Marvell Technology Inc (MRVL)

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08:04 MRVL Marvell: Friedman Billings says recent checks suggest MRVL's CY2Q business is tracking with expectations (15.09 )

Friedman Billings says recent checks suggest MRVL's CY2Q business is tracking with expectations as PC and networking shipments remain reasonably robust. Separately, top customer Western Digital (WDC) reported results that could pressure MRVL shares. Drive units are seasonally growing, a positive, but price pressure for disk drives is intense, possibly weighing on chip pricing a bit later. Also, WDC said it bought a Hard Drive Controller design team. They do not think this is a major near-term risk to Marvell. Firm thinks of MRVL here as the firm is in operating-margin turnaround mode, finally righting its ship. If these issues push MRVL down further, firm would be aggressive buyers, especially at or below $13. Firm's favorite chip stocks, in order, are ONNN, MRVL, MSCC, BRCM, SLAB, NSM, FCS, IRF, and ATML.