Mentor Graphics, Magma Design Automation, and Cadence Design Systems Scrutinized by Small Cap Stock Analyst
San Diego, CA (PRWEB) May 31, 2011
Mentor Graphics Corporation, Magma Design Automation, and Cadence Design Systems Inc. have been analyzed for trade-worthiness by small cap equity researcher Arthur Bagra. The analysis and comparison of the three stocks is freely available to interested parties at the Small Cap Network (http://www.smallcapnetwork.com).
Mentor Graphics opened 7% lower on Friday, whereas Magma rallied more than 7%. Arguably, both the stocks should receive more or less the same treatment as both are operating in the same industry, especially given that Mentor Graphics offered a bleak outlook for the second quarter while Magma Design too gave a ‘not so rosy’ earnings outlook for the next quarter, well below analysts’ expectations. Yet, the market clearly treated them differently.
Bagra’s analyssius offer one possible explanation, “This differential treatment begs the reasoning. Is it because Magma is a takeover target? Mentor’s acquisition bid for Magma last year did not reach anywhere but Magma is still a lucrative and strategic fit for Cadence. Or just that Mentor is too big to grow at the astounding rates it has grown at in the past?”
The commentary further notes how Cadence Design Systems Inc. is continuing its sideways movement, with no clear pattern on the charts for this electronic design automation software maker. It has moved in a trading range of US$ 10.1 – US$ 11 in the last month. At current market price of US$ 10.6, the stock may be valued with limited upside. Second quarter results are due later next month.
Bagra concludes of the group’s foreseeable future “A lot depends how the acquisitions play out in the sector. In this light, Magma Designs looks attractive and thus, can be accumulated after 5% drops.”
To review the full commentary and deeper examination Mentor Graphics Corporation, Magma Design Automation, and Cadence Design Systems, please visit the site at http://www.smallcapnetwork.com.
About SmallCapNetwork
The Small Cap Network is one of the web’s leading small cap stock trading communities. While large caps tend to receive the majority of media attention, small and micro cap stocks as well as penny stocks can often offer the most potential for investment gains. The Small Cap Network website and free newsletter offer in-depth fundamental research and technical trading recommendations on select small cap stocks , micro cap stocks, bulletin board stocks, and actively traded penny stocks, serving as an investor resource to better tap the full potential offered by such companies.
SmallCapNetwork.com’s commentary and trading ideas are based on a combination of fundamental analysis, company news and events, technical analysis, market analysis, and economic analysis. This combination of several kinds of criteria allows the site’s analysts to find the very best trading ideas, which is the reason the site is quickly becoming the premier web destination for those seeking superior returns.
Forward-Looking Statement: This press release may include or imply “forward-looking statements” within the meaning of the federal securities laws, commonly identified by such terms as “believes,” “looking ahead,” “anticipates,” “estimates” and other terms with similar meaning. Although the Company believes that the assumptions upon which its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct. Important factors that could cause actual results to differ materially from the Company’s projections and expectations are disclosed in the Company’s filings with the Securities and Exchange Commission. All forward-looking statements in this press release are expressly qualified by such cautionary statements and by reference to the underlying assumptions.
SmallCapNetwork.com is not a registered investment advisers or broker/dealer. SmallCapNetwork.com makes no recommendation that the purchase of securities of companies profiled in this website is suitable or advisable for any person or that an investment such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for many of their securities, investing in such securities is highly speculative and carries a high degree of risk.
Contact Information:
Small Cap Network
4653 Carmel Mtn. Rd
Suite 308 #402
San Diego, CA 92130
Source: Small Cap Network
# # #
©Copyright 1997-
, Vocus PRW Holdings, LLC.
Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.