PMC-Sierra ( PMCS) Background: PMC-Sierra designs, develops, markets and supports Internet infrastructure semiconductor solutions. 52-Week Range: $4.63 to $7.80 Book Value: $3.06 Price To Book: 1.6 In the last month, the stock performed well with a 7.2% increase. Shares in PMC have lost about 8%, and now I believe it's oversold. PMC is profitable but last quarter it took a non-recurring charge that wiped out the profit for the quarter. Next year it is expected to earn about 40 cents, putting the price-to-earnings at a bargain price of 13. The company carries a small amount of debt, but also has enough cash to pay it off at any time. Adjusting for liabilities and discounting, it has about 40 cents per share in cash. The average analyst target price for PMC-Sierra is $5.81. My price target is higher. My 12-month forecast is $6.02. I am not alone in my thinking with PMS; short interest is only 2% of the average trading float.