Sequans Communications S.A. (proposed SQNS) is scheduling a $110 million IPO with a market capitalization of $414 million at the price range mid-point of $12, for Friday, April 15, 2011. SQNS is based in Paris, France. The full IPO Calendar lists seven other IPOs for this week.

SUMMARY -- . SQNS has a strong foothold in the fast growing 4G chipsets market, set to grow 103% per year from 2010 to 2014. However, in 2010 one customer accounted for 66% of revenue. Shipments to that customer began in June 2010.

SQNS sales increased 317% from 2009 to 2010, to $65 million, after declining 14% from 2008 to 2009. SQNS generated a 4% net profit margin in September quarters, followed by a $2.8 million loss in the December quarter. Gross margins sequentially declined in the last three years from 66% to 2008; to 58% in 2009; to 51% in 2010.

VALUATION

Intel (INTC) continues to be unloved and underappreciated in the tech world, but doesn’t really get the attention of dividend investors or value oriented investors in a super strong fashion. At $20.02 INTC yields 3.60% and offers up opportunities to the savvy trader.

While there are much better growth stocks out there, and even stocks that probably have more upside gain appreciation, those stocks do not have a dividend yield at all and have a lot more risk on the table than INTC does.

To me, INTC’s consensus earnings of 2011 and 2012 EPS of 2.03 and 2.18 is fair, and leads to a 9.86 and 9.18, respectively. With INTC only paying out 0.72 per year in dividends, this leaves a lot of earnings to fund or acquire growth, or the company can increase its dividend payout ratio to perhaps 45% or 0.91 per year, for a yield of 4.56%.

Miscommunication?
Earlier this week, shares of OmniVision Technologies (OVTI) traded significantly lower following a poorly communicated article from The Wall Street Journal, in which Sony (SNE) CEO Howard Stringer was quoted making a curious comment regarding Apple (AAPL). Stringer reportedly said, "It always puzzles me. Why would I make Apple the best camera?"

The article specifically points out that Stringer references Apple and Steve Jobs several times during his interview with Walt Mossberg of The Wall Street Journal. Between the article's various Apple references and the peculiar Stringer quote, OmniVision shareholders were sufficiently spooked by Sony's persistent spectre. Even as the popularity of Apple's products has ensured prosperity for OmniVision shareholders, the market has been easily spooked by frequent rumors of Sony replacing OmniVision as Apple's primary supplier of camera components.

Not So Fast
We continue to believe that Sony is unlikely to overtake OmniVision's relationship with Apple in the

Cisco and Intel are both massive tech companies with slowing growth and bearish momentum. While many tech investors are chasing firms with brighter growth prospects like Oracle (ORCL) and Qualcomm (QCOM), these immense cash cows are becoming quite cheap based on fundamentals.

Cisco (CSCO): The demand for Cisco's products is expected to grow at a slower rate than last year (7% as opposed to 11%), but the stock has been in a cyclical downtrend for an entire year which makes me question just how bad investors believe the firm's outlook is. Trading at a 13.6 P/E ratio and a forward multiple of 12, its just a bit cheaper than its mega-cap cousin IBM which has been trading very flat since the end of January. Cisco is cheap now, but I believe it might get cheaper in the near future, which might present an opportunity to begin looking for an entry

By Carlos Guillen

Despite the catastrophe that occurred in Japan, I continue to see a strong year for the semiconductor business. While there may be some supply chain disruptions in the short run, I do not see strong signs that sales will be derailed for the entire year. Clearly, revenue growth this year will be much smaller than that achieved last year, but there will still be growth on top of phenomenal growth last year. I am also encouraged that there have not been any major revisions to revenue forecasts coming from important semiconductor players so far. Moreover, the most recent data from the semiconductor industry association showed a slower than seasonal month-to-month revenue decline in February.

According to SIA data earlier this week, the three-month moving average (3MMA) global semiconductor revenue in February decreased approximately 1.5 percent to $25.2 billion from the $25.5 billion achieved in January, representing a

All of the headlines will focus on how Texas Instruments (TXN) purchased National Semiconductor Corporation (NSM) for $6.5 billion, a sizable premium from the previous market capitalization. But savvy investors should ignore the headlines and focus on the fact that National Semiconductor was an inexpensive stock before the announcement. In hindsight, most deals seem obvious, but it may have been more so in this case. Using valuations similar to what National Semiconductor was trading at prior to the announcement, we can put together a list of potential technology buyout candidates.

Before the Texas Instruments acquisition agreement, National Semiconductor was a $3.4 billion market capitalization company that traded with a forward P/E of 11.44, a PEG ratio of 1.43 and a trailing return on assets of 15%.

Here are a list of technology companies with similar valuations:

SANDISK CORPORATION (SNDK)
Forward P/E: 10.24; PEG Ratio: 0.85; ROA: 12.36%
SanDisk Corporation is

Analysis: It's time for Q2 earnings season. We are preparing ourselves with a deeply analytical report on Q2 that should be out soon. Before we get to that, ASML Holdings looks like the first play of the season. ASML is a semiconductor equipment company that has done fantastically over the past year, and a pullback today has created a major buying opportunity. The company is expected to see its EPS move from 0.35 to 1.08 as well as an 87% revenue gain YoY. These gains are pretty significant, and we expect this stock to rally for the three days into earnings.

ASML's P/E ratio, at 13 currently, with those gains will drop to 10, putting it well below its competitors. The company's drop over the past two days seems fairly technical as the stock hit a heavy resistance line at 45

Advanced Micro Devices (NYSE:AMD) is now hiring Android driver development engineers, which shows that the company is clearly looking to make a significant push into mobile computing. It will not only compete against ARM-based mobile chip producers like Nvidia (NASDAQ:NVDA), but also against its arch rival Intel (NASDAQ:INTC) which is making its own push with Atom processors. Below we discuss what AMD is doing and what could be potential upside to it, given it gets reasonable success.

Our price estimate for AMD stands at $8.85, which is slightly above the current market price.

Hiring of Android Developers

AMD seems to have begun the process of making its chips compatible with Android software. This indication comes from the fact that the company has started hiring staff in order to develop Android drivers for its chips. It is well known fact that android is one of the leading operating systems for mobile

Tech stocks, and in particular semiconductor stocks, have lagged the rest of the market for most of 2011. If you think this sector might rebound over the coming months, this list may be a great starting point for your own analysis.

All of these companies are considered to be undervalued given the low PEG ratio at which they are trading (PEG < 1). With regards to their growth potential, all of these companies are outdoing their industry given the following growth related metrics:

- Projected EPS Growth Over the Next 5 Years
- Capital Spending Growth Over the Last 5 Years
- Capital Flow Growth Over the Last 5 Years

Considering this information, which of these stocks are you most bullish about?



1. Advanced Energy Industries, Inc. (AEIS): Diversified Electronics Industry. Market cap of $705.57M. PEG at 0.79. Projected EPS growth at 16.67% vs. the industry average at 15.14%. Capex

Intel (NASDAQ:INTC) competes with Advanced Micro Devices (NYSE:AMD) and Nvidia (NASDAQ:NVDA) in the PC microprocessor and graphics businesses. We estimate that about 26% of Intel’s value comes from server microprocessors due to its supreme command in this market. But could this be at risk given recent developments? Below we examine the possibility of a drop in Intel’s market share in this space and how it could affect the company’s stock value.

Our price estimate for Intel stands at $27.23, a roughly 40% premium to market price.

Intel’s share in server microprocessors has shot up since 2006, from a value of about 75% to an estimated 92% in 2010. There have been multiple factors contributing to this meteoric rise, including the launch of the Xeon 5100 series of processors in 2006 that helped Intel fight back against AMD, and AMD’s own delay with Barcelona chips in 2008.

Climbing the mountain is

Two semiconductor stalwarts have elected to combine. Texas Instruments (TXN) is to acquire National Semiconductor (NSM) for $25 per share in a deal that will be valued at about $6.5 billion. Nearly 80% above its prior close, the purchase price is indeed at a significant premium. The proposed deal combines TI’s leading market position with NatSemi’s high value offering, significantly boosts TI’s production capacity, and will combine two fairly compatible cultures and product lines.

A Closer Look at the Details

Much about the deal is appealing. As TI’s CEO Rich Templeton notes, National has significantly honed in on its most profitable products while decreasing expenses. With a portfolio of 12,000 products and a strong position in industrial products and power management, National nicely augments TI’s offering of 30,000 analog products. Moreover, due to idiosyncrasies of the analog market, there is less overlap than one would imagine. Analog products, especially high-performance

It’s not a pleasant time for the Douglas family, which recently purchased tens of millions in American Superconductor (AMSC) stock (or for any shareholder who did the same, for that matter). The stock was crashing 40% in after hours trading after the company revealed that its main customer, Sinovel

The rise of the "New Tech" mania in what appears to be a speculative bubble in shares of OpenTable (OPEN), Chipotle Mexican Grill (CMG), Travelzoo (TZOO), and many other pumped up stocks with astronomical valuations, has sucked money out of the Ciscos of the world and has investors hyper-focused on recent quarterly growth figures.

This is actually a gift for the astute value investor, as there may be a strong value investment opportunity in shares of the old guard technology names that have solid market share and strong historical earnings. These companies already own the markets they are in, and don't rely on some speculative story or innovation "revolution" to deliver shareholder value -- they already print money like Ben Bernanke. For some bizarre reason, investors today shun cheap stocks and buy companies that are markedly overvalued. That's okay for investors like me-- who actually view stocks as a claim

First, we'll look at Intel's P/E vs. earnings over the years.

Given the erratic EPS performance and lack of growth from 2005 through 2009, it's easy to see why the company's PE has declined over the years. But the pendulum appears to have swung too far in the opposite direction with a PE around 10. This appears cheap; however, we'll look at a few metrics before coming to any conclusions.

Pressure on gross margins or revenues could foretell a downward EPS trend going forward.

Based on the above, historical data margins and revenues have recovered nicely in 2010 (exceeding previous records), giving us confidence about the future. Going forward, Intel had this to say at the January conference call:

Turning to 2011, we are planning on continued growth in our core businesses resulting in approximately 10% revenue growth. We are forecasting continued strong gross margins with the mid-point of our

SemiLEDs Corp (NASDAQ:LEDS), a manufacturer of LED chips and components, said Tuesday that it swung to a second quarter loss, falling far below analyst estimates.

The Taiwan-based company's shares sank more than 17% on Tuesday to close at $11.96.

For the three months ending February 28, 2011, the company posted a net loss of $1.2 million, or $0.05 per share, compared to a net income of $1.9 million, or $0.04 per share, in the prior year period.

On an adjusted basis, net loss for the second quarter of fiscal 2011 was $0.7 million, or a loss of $0.03 per share. Analysts expected positive earnings of $0.08 per share for the quarter.

Revenue during the period rose 30% year-over-year to $10.0 million, but still fell below the $11.22 million analysts had estimated.

Chairman and CEO Trung Doan said:

While we believe the long term market opportunity of LEDs has not changed,

By Leena Rao

Wow. Texas Instruments (TXN) has signed an agreement to acquire fellow semiconductor manufacturer National Semiconductor (NSM) for $6.5 billion, or $25 per share, in an all-cash deal. The boards of directors of both companies have unanimously approved the transaction, which is expected close in six to nine months.

Santa Clara-based National Semiconductor is a semiconductor manufacturer, specializing in analog devices and subsystems. The company’s products include power management circuits, display drivers, audio and operational amplifiers, communication interface products and data conversion solutions.

Texas Instrument’s Chairman and CEO Rich Templeton said in a release that

SanDisk Corporation (SNDK) is not getting the credit it deserves for the level of profitability it achieved in 2010. And I am not talking about the accounting profits, but the economic profits, which grew 1000% last year while accounting profits grew only 213%. You can ignore the "bear signals" from stock technicians and fears over a glut in the tablet business when it comes SNDK.

The company’s financial achievements in 2010 are testament to the scalability of SanDisk’s operations. As a 35% increase in revenues generated a 1000% increase in profits, SanDisk’s financial performance in 2010 gives investors a peek into what I believe to be a very profitable future for this company. Here are some of the most important financial stats for investors:

• 2010 is the most profitable year ever in terms of accounting earnings, economic earnings, and free cash flow in our model, which goes back to 1998.

After the market closed, Texas Instruments (TXN) announced that it will buy National Semiconductor (NSM) for $25.00.This is quite a premium for a stock that closed at $14.25 and did not perform well over the past several quarters.

Based on the information from the sources of The Arora Report, I have carefully analyzed the information for the rational leading to the acquisition.

It is all about scale.Before the acquisition, Texas Instruments has roughly 15% share of the analog market.After the acquisition the company will have about 20% share of the analog market.

Applying the same rational to uncover the future buyout candidates, here is a list of the top ten candidates.

Analog Devices (ADI)

This company was founded by Mathew Lorber and Ray Stata in 1965.The company has 46% share of the world-wide data converter market.The company supplies to roughly 60,000 customers.

Maxim Integrated Products (MXIM)

Maxim was founded by

[Editor's note: The following is a revision of an article originally posted on April 5 that was disputed. The author has revised the article to clarify points raised in the dispute. (Apr. 8, 2011)]

In a press release issued on October 25th, 2010, MIPS Technologies Inc.'s (MIPS) CEO told shareholders that the company's financial performance:

continue[d) to demonstrate [the company's] momentum across all of [the company's] target markets. This momentum include[d] the addition of new licensees in the quarter that are developing chips for mobile solutions.

MIPS shares increased from $10.65 on October 25th, 2010 to $14.12 on October 26th, 2010, a 32.6% increase in a single day.

This statement, the resulting price movement of the stock, and its subsequent decline to $10 per share at the time of writing this article prompted us to evaluate the company and ask the question: Is MIPS Technologies relevant in the mobile chip