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Marvell Technology Group Ltd. (MRVL), Micron Technology, Inc. (MU), First Solar, Inc. (FSLR): Three Companies With Tons Of Potential

I love finding companies that are relatively unknown and unpopular, but are on the bring of success and growth. Investors need to constantly scan the market for these hidden gems, and I have done the homework and found these three companies whose near-term prospects are about to change for the better.

Marvell Technology Group Ltd.Positive on increasing traction in handsets and gaming consoles

Marvell Technology Group Ltd. (NASDAQ:MRVL) is finally beginning to see some traction in their wireless business, which may not be properly reflected in Street estimates or investor sentiments. As such, with shares trading under $12, Marvel could prove to be an attractive investment as even modest traction in the wireless segment could drive upside for the stock in the future.

Marvell Technology Group Ltd. (NASDAQ:MRVL) has won a number of sockets at Samsung for the second half of 2013 with its new dual-core and quad-core platforms, while Street consensus is calling for a $20 million increase in incremental revenue for the October quarter, which translates to 1-2 million handset units. The total addressable market at Samsung with Marvell Technology Group Ltd. (NASDAQ:MRVL)’s lineup must be at least 20 million units per quarter, well below Street estimates, which leaves plenty of room for upside.

Marvell Technology Group Ltd. (NASDAQ:MRVL) is also expected to start shipping WLAN to both Xbox One and PS4 consoles in the October quarter (with three chips per console), which could represent $40-$60 million in incremental second half revenue.

With investor and Street expectations low at the moment, there is an opportunity for the stock to favorably surprise investors in the near term.

Improving Elpida deal and positive memory trends

With the Elpida deal nearing closure and memory prices likely to continue to rise, investors should consider the current shares of Micron Technology, Inc. (NASDAQ:MU) trading for under $14 a share.

Analysts at Citi are estimating that the Elpida deal will add $0.88 in incremental earnings to Micron Technology, Inc. (NASDAQ:MU), which can help the company move towards profitability in the near future. Citi believes that Micron’s earnings can increase to $1.17 a share in fiscal year 2014 if memory prices remain stable or rise.

The proposed merger with Elpida will bring benefits of industry consolidation, cost-effective capacity addition and what shareholders will care about the most: EPS accretion. The recent devaluation in the Japanese Yen works in Micron Technology, Inc. (NASDAQ:MU)’s favor tremendously. The Yen has fallen 22% relative to the US dollar since the deal was first announced roughly a year ago. Micron’s offer was yen denominated, which lowers the final price tag for the Elpida deal.

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