MIPS Technologies (MIPS) develops embedded processors and intellectual property for use in performance-oriented markets such as digital entertainment, wired and wireless communications (including broadband access), office automation, security and automotive markets.

The firm continues to drive bottom-line margins higher in a very difficult environment. The valuation on MIPS has become very compelling as the stock has shed significant value from its 52-week high and the new acquisition has the potential to drive margin expansion.

Further, MIPS recently sold its analog business, which is highly accretive. We would be buyers of the stock at these levels.Zacks Investment Research