Bullpen.News From Edwin Dorsey
Get Daily Recap Feedback

Thursday, November 5, 2026

Back to the front page

From X

@ParadisLabs 1 click

Paradis on X

Initial notes on $MRVL's rumoured $LITE acquisition: 1. Why?! - $LITE's CEO has said they're sold out into 2029. So do management think the InP laser shortage is shorter than what their orders suggest? Need more clarity on why Lumentum would green light this. - With lasers sold out into 2029, I think owning the fab might be the only way $MRVL can guarantee supply for FY28 growth. So maybe Marvell and Lumentum have different reads on the InP laser shortage? 2. This has to be mostly stock. - $MRVL has ~$3.9B cash vs. $5.0B debt. Combined run-rate EBITDA is circa $7-7.5B (my numbers), so I think staying investment grade caps new debt at around $15-20B. - At a ~30% premium that leaves $85-90B+ paid in stock, with $LITE holders owning ~30% of the combined company. - I feel that’s a lot of Marvell to hand over. 3. I think the strategy is much better than the reaction. - $MRVL are essentially buying the part of the optical link that survives the move to CPO which is a pretty smart hedge on their own DSP franchise. - Marvell announced Inphi around 6 years ago (~$10B in cash + stock), and that deal built the core of MRVL's optics business. - This is basically the same move just one layer down, from DSP to laser, stacked on Celestial AI. - Probably a good signal that Marvell are running the same optics playbook again? 4. Dilution. - $MRVL trades on about 52x run rate EPS. - $LITE is about 60x on its FQ1 guide at tonight's AH price and about 70x with a 30% premium. - That's ~15% dilutive to Marvell's run-rate EPS (my rough napkin math number) assuming a 30% premium, ~$17.5B of new debt at ~5%, and the rest in stock at $228. (Again, very rough numbers). - It only turns accretive if Lumentum keeps outgrowing Marvell at today's guided rates (+24% q/q vs +15%) for another five or six quarters. - I think that's achievable while the laser shortage lasts, but I feel the whole deal ends up being a bet on how long that is. 5. Fewer lasers on the open market. - If LITE's output gets prioritised for $NVDA and Marvell's own modules, everyone else buying LITE EMLs and CW lasers gets tighter allocation. - I think that's bullish for laser pricing at $COHR and for other laser sources like $SIVE (lol). - Feels like the module makers that depend on LITE lasers are the quiet losers. 6. Channel conflict. - Marvell is the leading DSP supplier to 800G/1.6T module makers, and LITE already sells its own modules through Cloud Light. - I think Innolight and Eoptolink start shifting DSP share to $AVGO and $CRDO? - I feel hyperscalers will push harder to second-source lasers from $COHR.

Investor Letters

All letters

Thursday Tailwinds #13: Nov 5, 2026

Florida marinas are 92% full as boat counts rise and permits constrain new supply, creating pricing power for existing operators such as…

SUI $14B
Trade Ideas Flow 6 clicks

New Ideas From The Road

Aurelion Research increased healthcare exposure and sees opportunities in banking and defense, alongside research on Alcoa, Nike, ONON and…

AA $10BNKE $60B
Aurelion Research 4 clicks

Coupang: 3Q26 Business Recap

Coupang’s product-commerce growth rose 9% as data-leak effects fade, while management expects margins to return to pre-incident levels by…

CPNG $27B
Speedwell Memos 3 clicks

update on Gartner

Gartner’s growth has stalled after federal contract losses and cautious commercial spending, raising questions about its competitive…

IT $13B
scuttleblurb 1 click

Recycle Bin

Used aircraft engines can be repurposed as gas turbines, easing data center power constraints while tightening aviation supply.

EQT $33BRRC $12B
Doomberg 8 clicks
AMRZ · long

Amrize

Amrize (AMRZ) produces aggregates, cement and roofing materials across the US and Canada.

AMRZ $22B
Value Investors Club 3 clicks

TWLO Q3 FY12/26 Earnings Review

Twilio's Q3 revenue rose 20% to $1.56 billion, but Q4 organic growth guidance fell to 11% to 12% and RPO declined 28%.

TWLO $33B
Cestrian Capital Research 3 clicks

Marvellous Value Destruction

Marvell’s proposed Lumentum deal risks alienating Cloudlight customers and losing engineering talent, despite limited optical integration…

LITE $48B
Irrational Analysis 2 clicks

Publications we follow

Every publication on this site, hand-picked.

129 publications

Newsletters 109

YouTube 4

Blogs 15

Seeking Alpha 74 of 276

Nominate a publication

X accounts we follow

Every account on this site, hand-picked.

91 accounts
Nominate an account

Investor letters we follow

359 firms

Sectors

Ordered by how often our editor reaches for them.