| Stock (Symbol) | Stock Price | |
Mellanox Technologies (MLNX) |
$112 |
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| Data is as of | Expected to Report | Sector |
August 9, 2012 |
Oct 15 |
Technology |
| Sharek’s Take | ||
 Mellanox Technologies is the fastest stock in the stock market because its networking equipment is the fastest in the world. Demand is so strong that I haven’t seen numbers jump like this since Qualcomm (QCOM) did it last more than a decade ago. Here’s a look at quarterly sales:2011 Q2 63mil 2011 Q3 68mil 2011 Q4 73mil 2012 Q1 89mil 2012 Q2 134mil (the estimate was 105mil) Mallonox makes networking equipment (think Cisco). This gear can move data faster than anyone else’s — and it will be at least a year before competitors can catch up. The expansion of cloud computing and Web 2.0 is creating an insatiable appetite for Mellanox’s products (Google could be the reason for the sales surge). This is a multi-year cycle in the early innings, though I’m a quarter late buying the stock (we should be in around $65, my mistake). Today I will buy MLNX in the Growth Portfolio and Aggressive Growth Portfolio. |
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| One-Year Chart | ||
 267% profit growth last quarter, estimates show at least 250% growth coming the next two quarters and these could be low-ball figures. MLNX’s LTG just doubled from 25% to 50%. This stock has a P/E of only 30. |
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| Earnings Table | ||
 MLNX’s last quarter profit of $0.99 was almost double last quarter’s record of $0.51. Profits are jumping faster than sales. Sales grew 112% last quarter, and profits grew from $0.27 to $0.99 — 266%. MLNX has crushed estimates for two straight quarters.Annual Profit Estimates are hard to rationalize. Look at current annual estimates — more than double what they were two quarters ago. Let that sink in.Quarterly estimates are sentational — and just doubled. They just doubled. |
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| Fair Value | ||
 MLNX is still undervalued — even after its parabolic move. |
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| Ten-Year Chart | ||
 This stock is clealy in a parabolic move and when it corrects it could drop hard. I’m taking a half position, and will wait for the stock to correct to get the other foot in. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
2 of 16 |
Mallanox Technologies is the fastest stock in the market. It’s a must own — but at this level you can’t buy a lot. The stock is extended after a parabolic move. Investors need to step in, buy half a position now, and wait for the inevitable correction then double-up on the shares. MLNX is ranked 2 of 16 stocks in the Growth Portfolio Power Rankings and 1 of 8 in the Aggressive Growth Portfolio Power Rankings. Proceed with caution, this stock is extremely extended and could correct by 40%. |
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Aggressive Growth Portfolio
1 of 8 |
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