Thursday, February 21, 10:07 AM ET
RF chipmakers Skyworks (SWKS -8.5%), TriQuint (TQNT -4%), and RF Micro (RFMD -12%) dive following downgrades from Raymond James. Also possibly hurting is Qualcomm's (QCOM -0.7%) introduction of a new RF front-end solution that features 3D packaging, covers 2G/3G/4G air interfaces, and includes a chip containing a CMOS (bulk silicon) power amplifier and antenna switch - many rival solutions use more exotic materials. Avago (AVGO -4.2%) and Anadigics (ANAD -5.4%) are also lower.
ANAD's Power Amplifier is most likely in QCOM's new product. ANAD already does business with QCOM and it only makes sense to add the best PA in the world. If this stock drops below $2, it could be the buy of the century since the company is expected (and has shown sales increases in back to back Qtrs) to be profitable by year end.
"it could be the buy of the century since the company is expected (and has shown sales increases in back to back Qtrs) to be profitable by year end."
Really? The stock was arond 1.40 three months ago and less than 1.20 six months ago. And it will be the buy of the century if it goes under 2 now? When it still is losing .20/sh/qtr and has said that next quarter will be worse. I guess I find it very hard to believe that it will be flat by the end of the year. The growth will have to be a double or more in sales from Q2 through Q4. Not impossible, but highly unlikely. It will be much more likely that they will have to raise money and that will kill the stock price. JMO.
All of the "sisters" are down big today. Will be interesting to see whether there is the same follow-thru tomorrow. Buying some today (closing shorts). Still have over half the position. WIll continue to close as we go down. There clearly is risk to the strategy - will be hurt if this is the bottom. Just seems unlikely. JMO.
Now under half the position. Bought more today (2.09). Actually down to the longer term amount - all the recent shorts from right before earnings have been closed. Again, probably leaving lot of money on the table, but like to lower the exposure to an unforseeable event and take profits at the same time. Will buy more under 2.