Topic: How To Invest

Pat: Could you comment on Mentor Graphics? Thanks.

Article Excerpt

Mentor Graphics, $24.67, symbol MENT on Nasdaq (Shares outstanding: 115.1 million; Market cap: $2.8 billion; www.mentor.com; Manufacturing & Industry sector; TSI Network Rating: Extra Risk), makes hardware and software for improving the design of electronic products and speeding up their development. This has particular appeal for its connection to the Intelligent Auto investing theme. For example, Mentor’s software lets carmakers use less wiring in a car, identify potential safety issues, and minimize electromagnetic effects on sensitive components. The company sells its products and services worldwide, mainly to large firms in the communications, technology, military and transportation industries. The auto business is one of Mentor’s biggest growth areas, because the industry is quickly shifting from mechanical to electronic systems: electronics now make up roughly 40% of a car’s cost. To further its automotive expertise, Mentor bought XS Embedded in mid-2014. This firm is a leading provider of products and services for in-car entertainment and driver-assistance systems. In the quarter ended October 31, 2014, Mentor’s revenue rose…