Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, miniaturization technologist Tessera Technologies (XPER) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Tessera and see what CAPS investors are saying about the stock right now.
Tessera facts
|
Headquarters (founded) |
San Jose, Calif. (1990) |
|
Market Cap |
$1.1 billion |
|
Industry |
Semiconductor equipment |
|
Trailing-12-Month Revenue |
$182.7 million |
|
Management |
Interim CEO Thomas Lacey Acting CFO John Allen |
|
Return on Equity (average, past 3 years) |
(3.7%) |
|
Cash / Debt |
$380.5 million / $0 |
|
Dividend Yield |
2% |
|
Competitors |
Advanced Semiconductor Engineering Amkor Technology |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 93% of the 383 members who have rated Tessera believe the stock will outperform the S&P 500 going forward.
Earlier today, one of those bulls, All-Star seekinggotham, followed the lead of activist firm Starboard Value and explained the opportunity:
Starboard Value. Tessera seems to fall within their sweet spot; a tech company with a declining core business that they look to augment with additional, new service lines that are unprofitable and generally going up against tech behemoths in areas in which the behemoths are strong. Starboard's play is to figure what additional service lines actually make sense and exploiting them more fully, ceasing the ones that don't and finding a buyer if that makes the most sense for Starboard.
