I gave my answer a couple of days ago. Grade did too. MK keeps linking to potential growth stories. IS THERE ANYONE with a good, CREDIBLE story as to why Cirrus isn't trading higher, given the great fundamentals? Seriously anyone? Please....shorts stay away. I am trying to make a serious post.
Anyone serious? Is it the lawsuit? Is it "something" the public doesn't know yet??
I don't know what the problem is other than such a large percentage of earnings being tied to you know who and they are out of favor for the moment. All I know is the company is still doing very well and their out look is bright but if the share price doesn't start moving up soon my decision to buy a 2014 Corvette might change to buying a 2015.
Sentiment: Strong Buy
I am a VERY long term holder of Cirrus. Don't post often, but follow you guys -- Grade, appreciate your research and comments. In my opinion, the main problem right now is the fact that they rely so heavily on Apple. A new customer, (Samsung would be wonderful) would definitely turn us around in a hurry.
relax, there is NOTHING wrong, it is what Grade says, a cyclical movement in AND OUT OF stock sectors AND AAPL NEEDS NEWS!! they need a catalyst, so we need a catalyst as well To MOVE higher and a motivation for the traders to jump back in the stock. Period. A consolidation in a trading range is HEALTHY AND CONSTRUCTIVE, THE LONGER THIS PERIOD LASTS THE HIGHER WE GO IN THE LONG TERM!! we had a parabolic move and a correction. nothing more nothing less!!!!
the fundamentals are intact or else none of us would still be here
lets see how the tear down goes in the market's new beloved BBRY! (get real)
HOLD!! KEEP THE FAITH!!
THE MOVE TO MINERS HAS BEGUN! THEY ARE REPORTING SOON AND RETAILERS ALSO SO THATS WHERE THE MONEY IS GOING!!!.
SORRY FOR ERRORS NO GLASSES ON!!
Sentiment: Strong Buy
Options, Options. There was a huge interest created before apple reported and after. The thought was that CRUS would not beat. I think there is a lot of big money on that side of the trade that needs the stock to stay down until after opex. Just a guess.
any talk here about any lawsuits or "something being wrong" is pure speculation, but from being a trader for the past 20 years, this is what I think right now. Being highly correlated to Apple is killing this stock as some speculate their growth rates will slow as Apple's growth rate slows. Think of it logically, if a company's fortunes are tied to another company and that other company is under significant pressure because of a perception of losing market share, lower profit margins and stiff competition, don't you think the former would be under pressure? When the time comes that the market gives Apple a break, I think you'll see CRUS's stock price loosen up.
Someone told me on this board in the past that our beloved grade is nice to people he shouldn't be. (agree with fiber he is a class act) I have no explanation and am frustrated but as we know with this stock the cycle will shift. I'm looking for it to move into the 30s soon. Hopefully by summer we will get a fair valuation for this company!
The frustration with this stock causes some friction. I choose to believe better days coming.
Longs in this stock, especially the ones who saw CRUS go to 40, are certainly frustrated by CRUS not moving higher. If you look back, CRUS actually started moving down some during the latter part of September. It did move back up some around earnings, but then took that big drop during the week after earnings announcement. During the last 10-12 weeks CRUS has basically stayed in a range. If there was something negative going on with this Company, I would think that the stock would have kept going down. I have looked at the price charts of some of the biggest growing tech stocks from the last couple of decades, and many of these stocks , while still in their big growth phase, had corrections of 40 to 50 %, and some had corrections lasting 4 to 5 months, even though they were growing at a high growth rate. To me , I see CRUS as a good growth company, that is undervalued, and I choose to stay with my investment in this company, because I believe that the stock price will eventually catch up to it's growth rate. It is not easy seeing an investment that I strongly believe in not rising in value the way I think it should, but I understand that stocks have their different cycles, and we cannot explain why they go through them, but if if the company is growing at a good pace, then I just have to be patient.
Sentiment: Strong Buy
This is all very convoluted. The lawsuit allegations are ridiculous and the stock price is anticipating an apple disaster. The right message is that news from apple will be the catalyst. Company can do nothing specifically other than buyback shares. Still a solid company and would rather own this than Netflix or amazon.
Golf, what you say is correct. But here's the difference. Cirrus has grown tremendously in the last 1-2 years.....And it is projected to grow massively in the next 1-2 years, albeit not sure until soon.
Yet Cirrus trades at 12 PE (trailing12 months). Tell me what company has had this history??? Seriously. Any company that has grown massively in the last 1-2 years, and plans to grow another 100 percent in the next 1-2 years do NOT have PE's in the 12 range. Freakin' Microsoft, Auto Companies and Cigarette companies growing at 4-8 percentage have higher PE's. Yet, Cirrus Logic's PE is MUCH LOWER.........THAT is WHAT we need to explain.
SOMETHING IS WRONG.
The lawsuits aren't causing this low price, we were here before they even cropped up..I will say this eerily reminds me of Omnivision a couple of years ago. They were doing great providing the camera for Apple products, then they came up short on earnings and insiders sold stock and before you know it they had like 8 law firms suing them. They ended up still being in Apple but lost a socket to the rear camera in the I-Phone 4S. Sony ended up replacing them for the the rear camera the more expensive 8 megapixel socket and they kept the front camera. There were also stories in Chinese papers saying they lost the socket. Now we haven't seen any of that, and I don't think we lost anything with Apple, but if we do get any articles to that effect, beware.