Silicon Motion Technology [Part 2]: A Cheap Stock Primed For Growth

You can find part one on Silicon Motion Technology Corp. (ADR) (NASDAQ:SIMO) here. Part one summary: Silicon Motion Technology Corp. (ADR) (NASDAQ:SIMO) appears cheap trading at a forward P/E of 9.3, after stripping out cash; around half the average valuation for companies in the diversified electronics sector. On the other hand, the company is suffering somewhat of a slow-down as third quarter net income declined 39% year-on-year and revenue slipped 26%. It would appear that the reason behind this slowdown is two-fold. Firstly Silicon Motion Technology Corp. (ADR) (NASDAQ:SIMO) and is management have been going through a ‘transition year’, positioning the company…