RFMD is in the process of heavy production and shipping of "Power Smart" front end.
Many analysts are confused about were we stand in this here-to-fore, cyclical business. Listen to what Dean P. and Bob B. are saying now.
They are saying that this business has fundamentally changed, and we are into now in a long countercyclical business model.
Must of what has changed is to move toward mobile connectivity reliance by users. Gartner and other statiscal gathering companies are predicting that internet connectivity will primarily mobile by 50% by 2012.
The cellphone providers are locking consumers into a 1-2 upgrade cycle which will guarantee a consistent market for cellphone makers, primarily smartphones. Sure you will still have seasonality but the basis business will be more stable. In addition we as an economy has only begin to recover.
Their are over 6 million people still out of work. Once we figuer out how to get these people back to work, it will increase demand for cellphone as conmsumer have more money to purchase mobile phones.
The administration in America and other countries have a goal of full employment which means a 5% unemployment rate.
RFMD is aware of the market dynamics thats why they lead the RF supplier segment in R and D investment. They are always looking to develope new products.
Did anybody notice how many press announcement they had in the Q2 calendar period, more than ever. They know that new products is the only way to stay on top in sales and as of Q1 2010 calendar, they are still the sales leader.
Look for results in Q3 2010 Financials.
Tommiegun 01/04/11 3:30PM
<< I believe RFMD will raise the bar in a couple of days since UBS has increase it's estimates for Q3, Q4 2011 and 2012.>>
Are you blind or you just don't get it? Most companies with good reports drop like a rock after the earnings report. And when were analysts right? They just a mile behind and try to push stocks up so their customers unload or push them for loading.
You got two days to correct yourself before get a huge losses.
I have watched RFMD for over two years. The few weekds leading up to financial reporting is great time to buy and be rewarded.
RFMD has beat estimates for five straight reports. After the report you get a bonus bounce.
Five quarters is not enough watching of Rfmd, especially when the worst period for RF is the March quarter and last year March was an aberration to the upside. In other words, you have not experienced the FUD that accompanies seasonality for the RF power amp guys.
You will see the FUD come out a week from Tuesday.
If Bruggeworth can make investors believe June will be strong and not to worry about the March quarter, then possibly Rfmd will avert a return to $7.50.
If Priddy thought Rfmd had a solid story to get the company and investors through unscathed to June, why did he just sell another 18,000 shares?
Where are most of the low points on this five year chart?
Answer: From January to April.
RFMD is doing well today but it is underpriced when compared to its peers.
Due to underperformance over the last month, RFMD will outperform its peers in the weeks leading to earnings reports.