David Einhorn Doubles Down on Marvell Technology (MRVL)

January 23, 2013 1:13 PM EST
Marvell Technology Group Ltd (NASDAQ: MRVL) wad David Einhorn's biggest loser in 2012, but instead of selling the stock and moving on he is doubling down.

Commenting on the negative Carnegie Mellon verdict, Einhorn said "this is a case of a novel interpretation of the law by a local judge, combined with a hometown runaway jury." He said while the legal system is hard to predict, there are many reasons to believe the award will be substantially reduced or eliminated.

Einhorn said the company's large product transition is not in the valuation. He compared the position to his past Sprint (NYSE: S) bet. "A year ago we were feeling pretty discouraged by our Sprint position, but we re-evaluated and determined that while the stock was down for good reason, or overall thesis was intact. It turned out to be a good decision." He expects Marvell Technology to turn out similarly and "sprint higher" in 2013.

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