NetLogic Microsystems Inc. (NETL)

[nlightn]

Can NetLogic's Latest Pattern Rev Up Investors' Portfolios?
Christina Wise,
Investor's Business Daily
01/03/2011

Today we're going to look at NetLogic Microsystems (NETL).

The company makes semiconductors that help the Internet keep up with growing demands from smart phones, tablets and the many new apps that are constantly coming out.

* After a downturn a few years back, sales have rebounded. The company has scored triple-digit sales growth gains for the past four quarters.
* Earnings growth has also been hot, coming in at 82% last quarter.
* But analysts think growth will cool during the coming year. They see earnings rising just 4% in 2011.
* The tech world is powered by new products and NetLogic is devoting a good chunk of its money toward coming up with them. Last year it funneled more than 42% of its sales revenue toward research and development. That's above average for its industry group.
* The company's management owns about 16% of its shares. You like to see management own a portion of a company because it means they have a stake in its success.
* Mutual funds and hedge funds own 80% of the shares not owned by management. So there is some interest from professional investors. Also, the number of funds owning the stock has been rising — another plus.

http://www.investors.com/NewsAndAnalysis/Article.aspx?id=558514&ven=yahoo