By my own feelings, NXP will likely go to $50 billion in market cap by mid-2016 and hopefully double that in two or three years after that based on estimates in the number of NFC chips that would be out there and how far the IoT will go and the improving equity of the company with declining debt.
I think you may be right for a number of reasons. China is slowing down but doing well. It doesn't look like anything close to a crash as some may fear any time in the near future. And 30% of NXP's business is in China and growing. Also, not only is NXPI's business growing in items such as smartphones, credit cards, etc. but the automotive field, health care, and other areas are fast growing segments that are making up much of company's revenues.
Furthermore, despite the fall in the euro, the commodity that effect NXP along with other companies down the road would be oil prices. And that is looking good for another few years.
in my experience, price dips in nxpi are both short and shallow. It's best to use weakness to accumulate. Euro weakness is not bad for nxp since they are an exporter. There is plenty of growth ahead for this modestly valued company. Great products in many sweet spots, plus good management that I trust to continue on the correct course. It's the only stock I recommend to friends because my conviction is so solid. Goldman Sachs seems to agree with me, in their classic scheming backhanded way....
My decision to sell NXPI doesn't have anything to do with the company or its products. I still love the NXPI story. I just chose to play it safe in a market that is acting completely bi-polar. If earnings ease my fears about the Euro, I have no problem jumping back in.
dividendseeker- as the euro gets weaker, nxp's products become cheaper for customers outside europe. I'd rather have that, than what qualcomm is going through. Their chips keep getting more expensive as the dollar increases. Moreover, we own nxpi in dollars. Another tailwind for nxpi longs.
Apple and currency are different subjects. So, do you think if Apple reports lower than expected sales that wont matter to NXPI?
And if you are all over this currency situation which isn't new, why did you buy NXPI just last week? I don't get it
NXPI is in the Netherlands. They earn in Euros. As the Euro gets weaker so will their earnings. They earn in Euro but report in US dollars. I sold NXPI on Friday until we see how much the weak Euro affects their earnings.
I purchased NXPI last week expecting a pop from SWKS....It ended the week up 3%...sorry I didn't buy more SWKS which was up 9% or TSEM up12% and with a better chart...tried to decide between QRVO and NXPI and so far a poor pick,,,Will hold but concerned over weak action.
you have to put a premium on the fact that they are a niche "chip" stock with basically no real competition in sight. Too NXPI is the leader of the newest and fastest growing segment of this sector. Their organization and leadership are top notch and they have proven time and time again that they can adapt to a fast changing landscape. All the markings of a winner for many years to come.
The weak euro is really in favor of NXPI. The company is based in the Netherlands and exports will really become easier and more rewarding.
NXPI will be punished due the the drop in Euro. I still believe in the company, but will the market drag this even further. It will be interesting when Apple reports.
companies, stocks making new highs in a flat or down market get a lot of attention further driving the price higher as traders look to appreciate their money.
Sentiment: Strong Buy
Could be the impact of the ECB's quantitative easing policy announcement. It's caused the value of the Euro to fall, which means when NXPI gets paid in Euros they are worth less relative to dollars, yen, etc.
XLNX and SNDK major players in the space have both lowered future projections. NXPI is down in sympathy along with much of the sector.
PEG = 1 is indeed a positive sign of relative undervalued. However, a 100% run-up in a year will present lots of challenges - especially during highly volatile and uncertain market overall as noted by mvislong1. Market participants will surely look at things on a relative basis overall.