Could Be a Monolithic Misstep

Since the start of the year, one of Monolithic Power's (MPWR) shareholders has nearly doubled its stake in the chipmaker. Adage Capital Management, a firm co-managed by Phil Gross and Robert Atchinson, recently reported that it now holds a little over 2 million Monolithic shares, or 5.6% of the company -- up from 1.2 million at the end of December -- according to a 13F filing with the SEC.

Monolithic Power has market capitalization of about $820 million, with the stock seeing average daily trade of about 300,000 shares. For all of 2012, it reported sales of $214 million, up 9% from the prior year -- though that came in below the $219 million recorded for 2010, and operating income and earnings have followed a similar pattern. In light of this, we aren't sure we would take the year-over-year improvement as an indicator of sustainable growth that may persist at a similar rate over the next several years; in fact, we'd worry that there may be an longer-term downward trend in Monolithic's business....329 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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