August 24, 2010 | In: Technology
Revisiting Mellanox
I have already written about Mellanox and why I think it’s very interesting, especially in these days where acquisitions of small technology companies is the trend.
I have written that it’s a must buy below $15, well the stock touched $14.80 last week (which was a great buy), and rebounded yesterday, and is now currently trading at $15.59. If you bought (on Friday), let’s say, 300 (which was what I would’ve bought had I have the money) shares @ $15 (which was my minimum recommendation to enter the stock) and you sold in this bad day, then you would have made $177, not too bad for investing $4500 for 3 days in this stock.
Mellanox has a huge potential, and can be easily bought by IBM or another very large company. MLNX’s market capitalization is about half a billion. I don’t think IBM, Intel, HP, or DELL would have any problem buying this company for a billion, even at that, it would still be a bargain. They need what MLNX is offering,
The stock went up another 7 cents while I’m writing this post. It’s now trading at $15.65.
I would still wait for the stock to retreat to $15 or less to buy, right now the price is going up solely based on the current acquisitions happening in the market.
Don’t rush, but don’t ignore this stock… A good entry point is below $15, an excellent entry point is below $14.80, a super entry point is below $14.70. Don’t expect the stock to be traded less than that, at least in the foreseeable future.