Trade-Ideas LLC identified

Marvell Technology Group

(

MRVL

) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Marvell Technology Group as such a stock due to the following factors:

  • MRVL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $45.5 million.
  • MRVL has traded 1.7 million shares today.
  • MRVL traded in a range 287.3% of the normal price range with a price range of $0.74.
  • MRVL traded above its daily resistance level (quality: 31 days, meaning that the stock is crossing a resistance level set by the last 31 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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More details on MRVL:

Marvell Technology Group Ltd. designs, develops, and markets analog, mixed-signal, digital signal processing, and embedded and standalone integrated circuits. The stock currently has a dividend yield of 2.4%. MRVL has a PE ratio of 4. Currently there are 5 analysts that rate Marvell Technology Group a buy, 1 analyst rates it a sell, and 12 rate it a hold.

The average volume for Marvell Technology Group has been 4.7 million shares per day over the past 30 days. Marvell Technology Group has a market cap of $5.2 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.66 and a short float of 2.1% with 1.30 days to cover. Shares are up 14.1% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Marvell Technology Group as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • MRVL has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 2.80, which clearly demonstrates the ability to cover short-term cash needs.
  • 45.19% is the gross profit margin for MARVELL TECHNOLOGY GROUP LTD which we consider to be strong. Regardless of MRVL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, MRVL's net profit margin of -9.15% significantly underperformed when compared to the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 153.5% when compared to the same quarter one year ago, falling from $115.30 million to -$61.74 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, MARVELL TECHNOLOGY GROUP LTD's return on equity significantly trails that of both the industry average and the S&P 500.

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