5/23/24 - $mlab - best to avoid tough setup in tough tape ignore
5/23/24 - vrockstar -
MLAB
- looks like a trap w/o proper DD or insight on trends. 5% yield fine for growth, but 100%+ of it is stock comp on a sinking currency (the stock). if you take out R&D, the GP growth is simply a function of uptick in sales growth, no leverage here and increasing R&D budget too. this looks like a name run by PE that ultimately won't be successful. net debt is the wrench that keeps me even less interested. let them play their game and fight over the scraps. look for better plays in such a challenging tape.
MLAB
- looks like a trap w/o proper DD or insight on trends. 5% yield fine for growth, but 100%+ of it is stock comp on a sinking currency (the stock). if you take out R&D, the GP growth is simply a function of uptick in sales growth, no leverage here and increasing R&D budget too. this looks like a name run by PE that ultimately won't be successful. net debt is the wrench that keeps me even less interested. let them play their game and fight over the scraps. look for better plays in such a challenging tape.