Why Silicon Motion Is Poised to Outperform

Market-trouncing returns could be written in this 5-Star.

Brian D. Pacampara, CFA
Brian D. Pacampara, CFA
Feb 6, 2013 at 8:07PM
Technology and Telecom

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, semiconductor company Silicon Motion Technology (NASDAQ:SIMO) has earned a coveted five-star ranking.

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

Silicon Motion facts

 

 

Headquarters

Jhubei City, Taiwan

Market Cap

$486.1 million

Industry

Semiconductors

Trailing-12-Month Revenue

$281.4 million

Management

Founder/CEO Chia-Chang Kou

CFO Riyadh Lai

Return on Equity (average, past 3 years)

13%

Cash/Debt

$169.6 million/$0

Competitors

Advanced Micro Devices (NASDAQ:AMD)

NVIDIA (NASDAQ:NVDA)

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

On CAPS, 98% of the 798 members who have rated Silicon Motion believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, hend6, helped bring the Silicon Motion opportunity to our community's attention:

A strong balance sheet in an ever-demanding tech industry leaves them more free than the giants to jump to new waves. Certainly a volatile market, so I'll reevaluate after a year. A recent offering of a small dividend helps a little as well.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.