'Profiled March 7, OmniVision Technologies, Inc. (OVTI) remains well positioned. (The company is a supplier across several industries, though Apple Inc. is a notable customer.)
The shares initially spiked three weeks ago, rising on the company's strong third-quarter results.
The ensuing upturn has been comparably flat, and this week's strong-volume upturn positions the shares to retest the February peak.'
Sentiment: Strong Buy
Wasn't 'JUST' a rumor last time, that cost me a pretty penny back then..
Thanks for the article ndprops. The Sony risk for the front facing sensor in coming iPhones is a good thing to keep in mind. For that reason, OVTI is a small sized position for me compared to some of my other holdings. At these price levels, however, it is underpinned to some extent by book value, cash on the books and rapidly growing diversification.
On a technical level, OVTI may now be finding some support at the rising 20 dma which has finally risen above $17. The open gap, however, from back on February 27th down to $16.22, continues to bug me.
Sony good at rumors, OVTI on the rise, no stopping her..........
Sentiment: Strong Buy
If this is true about the I6, OVTI will lose 20+% the day's it's confirmed, but probably 20% on the ensuing rumors before that.. I will have a tight stop under this one, gonna bet the small profit I have on my last shares on it but will not gamble my principal again. Just saying, I've seen this moving before.
HOWEVER if we have not lost that slot, then I think with other business growing, we will be mid 20's once these phones start getting torn down.
But I give it a better than even chance Sony got that front slot from Apple, which I think was the rumor a few weeks ago and here's Sony bragging about it. Didn't they brag about it before and it turned out true with the 8mp slot?? There should be a "Be Careful" sentiment to chose from..
Put these on your radar Fitx and Latf and PMCM all are making new highs. Sector rotation investors are getting in on the bottom floor.
Increasing competition I guess, but their shallow analysis ignores OVTI's successful increasing diversification.
More from Pacific Crest: "Given improving near-term demand for iPhones, indications of inventory replenishment at wireless suppliers following a two-quarter correction, and Taiwan Semiconductor Manufacturing's (TSM) positive preannouncement, we remain buyers of Arm [rated at Outperform] and continue to see an attractive trading opportunity in Broadcom [rated at Sector Perform].
We see significantly less risk to our near-term estimates for Cirrus and OmniVision, but our concerns about long-term saturation of high-end smartphones and increasing competition are unchanged. Our ratings on Cirrus remains Underperform and we see fair value to $14. OmniVision remains Sector Perform."
Imo, the analyst doesn't rexplain why they would buy ARMH and and BRCM off the above channel check analysis, but not QCOM, OVTI, SWKS, OVTI etcetera.
Elsewhere on Barron's "Investor Soapbox", the Pacific Crest team wrote: "Consistent with our recent carrier checks, our supply-chain conversations indicate Apple component demand trends have improved, driven by better-than-expected demand for the iPhone 5S and a reduction in iPhone 5C retail channel inventories to targeted levels. Furthermore, Pacific Crest Apple analyst Andy Hargreaves believes replacement rates remain strong and that Apple is gaining share at high-end customers. He sees potential upside to his iPhone unit-sales estimates of 39.7 million units in March and 33.6 million units in June".
"Based on supply-chain conversations, Hargreaves expects a larger 4.7-inch screen iPhone 6 to launch in September. While a higher subsidized price of $299 could benefit Apple, we do not expect that component suppliers Cirrus and OmniVision will benefit as their revenue growth will be driven primarily by unit-volume growth. While a larger-screen iPhone 6 could drive incremental share gains at the high-end, we do not anticipate that a new larger-screen iPhone will materially change Pacific Crest estimates for iPhone unit growth in of 3.7% in calendar 2014 (154 million units), down from 13.5% growth in calendar 2013."
Just bringing this to light to once again show that this particular analyst is not expecting OVTI to lose share in the iPhone 6. But this same analyst isn't expecting the iPhone 6 to materially change Pacific Crest's estimates for iPhone unit growth in CY 2014. He is only expecting 3.7% iPhone unit growth over CY 2013. I think that estimate is too low. Personally, I believe there is a lot of pent up demand for iPhone 6. JMO.
Barron's "Tech Trader Daily" quoted analyst Andy Hargreaves from Pacific Crest today: "For the first time, our checks indicated volume component orders for iPhone 6. We expect significant component orders to begin in July, which is consistent with public availability of the device in late September or October."
If this analyst is right about significant component orders for iPhone 6 not beginning until July, then I wouldn't think a person could conclude that this quarters' weak OVTI guidance is indicative of a slot loss in iPhone 6. Next quarter's guidance would be the one to really watch, but keep in mind, OVTI has outperformed quarterly guidance by a wide margin every quarter for the last year.
fitx and latf and pmcm and utrm all doing well today All in the post sector foks Pot stock have a lot to go.
Sentiment: Strong Buy