Based on the aggregated intelligence of 165,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, chip designer NetLogic Microsystems (Nasdaq: NETL) has received a distressing two-star ranking.

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

NetLogic facts

Headquarters (Founded)

Mountain View, Calif. (1995)

Market Cap

$1.8 billion



Trailing-12-Month Revenue

$230.6 million


CEO Ronald Jankov (since 2000)
CFO Michael Tate (since 2007)

Return on Equity (Average, Past 3 Years)


1-Year Return



Integrated Device Technology (Nasdaq: IDTI)

Sources: Capital IQ (a division of Standard & Poor's), Yahoo! Finance, and Motley Fool CAPS.

On CAPS, 27% of the 178 members who have rated NetLogic believe the stock will underperform the S&P 500 going forward. These bears include OklaBoston and All-Star mrindependent, who's ranked in the top 1% of our community.

Just last month, OklaBoston noted that even the insiders seemed to be selling high: "Recent selling by multiple insiders and a P/B ratio of 3.26."

In an earlier pitch, mrindependent also advised bulls to start cashing in their chips:

Net Logic Microsystems, Inc. appears in my overvalued stocks screen. ... The two positives for the company are that it is financially solvent and historical sales growth has been terrific. To the negative side, the longterm return on equity is only 3% and the current share price is unjustifiably high.

What do you think about NetLogic, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!