1-Star Stocks Poised to Plunge: MaxLinear?

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, fabless semiconductor company MaxLinear (NYSE: MXL  ) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at MaxLinear and see what CAPS investors are saying about the stock right now.

MaxLinear facts

Headquarters (Founded) Carlsbad, Calif. (2003)
Market Cap $235.0 million
Industry Semiconductors
Trailing-12-Month Revenue $82.0 million
Management Co-founder/Chairman/CEO Dr. Kishore Seendripu
Co-founder/Chief Technical Officer Dr. Curtis Ling
Trailing-12-Month Return on Equity (26.1%)
Cash/Debt $81.3 million / $5.0 thousand
Competitors Analog Devices
Broadcom
NXP Semiconductors

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 32% of the 25 members who have rated MaxLinear believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star BlacknGold, succinctly summed up the bear case for our community:

This is another "almost there!" company. But I just don't see it. MaxLinear is worth $2.65 per share using shareholders' equity. It may very well turn a profit within the next year, but one miss on the lofty expectations of analysts will crush shares. It is virtually inevitable.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of NXP. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.


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