Melvin: "At the current level, the stock is simply cheap. The shares trade for less than one-third of tangible book value and have an enterprise-value-to-EBITDA of just 3. The company is extremely sensitive to economic conditions, but I believe this is priced into the stock."

Melvin: "Integrated Devices is well positioned to withstand the downturn. It has over $300 million in cash and no debt on the balance sheet. Although profits may be slipping, the company is still profitable, unlike many other technology companies this year. The company has a strong global presence, with over 70% of revenue coming from outside the U.S. Integrated Devices will be able to put its cash to work in the current weak stock market in the form of either acquisitions or stock buybacks."

Melvin: "First, the company has $1.7 billion of cash on hand and is still profitable. It has also announced the sale of non-strategic assets to pay down debt over the next year. The other reason to look at the stock is that one of the most successful investors of the current bear market, John Paulson, is a large shareholder. So is value investing legend Charles Brandes. That, combined with the high Piotroski score, makes the stock worth a look."