When the stock of a quality company dips on a day when the rest of the market is buoyant, it's easy to get suspicious. Marvell Technology
What was the news? Were the company's chips in the Sony
No. It turns out that Marvell was simply buying UTStarcom's
Here's where it becomes important to remember that no company operates in a vacuum. Were there any material news events coming out of the various specialty areas that Marvell toils away in? Yes.Seagate
So now we can see why Marvell investors would be concerned about the deal. But does it seem overdone that Marvell's shares should surrender more than half of the value of the deal between Seagate and Maxtor? I certainly think so.
Marvell was one of the picks featured in my "7 Stocks to Buy in 2006" article. Even with yesterday's dip, the stock is still trading 25% higher than when it was singled out back in September. The growth story may be dinged, but it's certainly not totaled. Keep watching the situation, since continued weakness may lead to an attractive entry point.
That is, of course, assuming that your video iPod isn't suddenly loaded up with old Milli Vanilli videos.
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Longtime Fool contributor Rick Munarriz knows that Marvell just can't get into the comic book business, even if it loses the last letter in its name. He does not own shares in any of the companies in this story. The Fool has a disclosure policy. He is also part of theRule Breakersnewsletter research team, seeking out tomorrow's ultimate growth stocks a day early.