For Marvell Technology, It Is Time for Share Replacement Therapy

(This is an excerpt from an article I originally published on Seeking Alpha on May 7, 2013. Click here to read the entire piece.)

Marvell Technology (MRVL) has enjoyed a tremendous run since hurtling downward after a legal setback in its patent dispute with Carnegie Mellon back in December. At the time, I thought it would consign MRVL to dead-money status until legal arguments resumed in May of this year (see “Loss in Patent Case Turns Marvell Technology Into Dead Money“). Just one week later, I realized that the stock was exhibiting classic signs of printing a sustained bottom (see “Chart Review: Stronger Signs Of A Bottom for Marvell Technology“). A quick plunge and recovery in the stock on May 2nd as legal arguments resumed was a great reminder of how the patent infringement case may yet impact the stock.


MRVL hangs tough in the face of patent verdict and resumption of court arguments
MRVL hangs tough in the face of patent verdict and resumption of court arguments

Source: FreeStockCharts.com

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Regardless, I had May painted red in my calendar for MRVL, and on May 1st I decided it was time for some share replacement therapy to help me sleep at night through the final settlement of this case. On May 1st, I tweeted that call options looked exceptionally cheap.{snip}

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Even with these promising signs as backdrop, I executed the share replacement therapy. I promptly replaced my shares with January, 2014 call options. {snip}

From the press reporting of the case, it seems that MRVL is planting its hopes on getting the judgment significantly reduced, if not eliminated.

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Be careful out there!

(This is an excerpt from an article I originally published on Seeking Alpha on May 7, 2013. Click here to read the entire piece.)

Full disclosure: long MRVL call options.

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