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Cypress Semiconductor Corporation Message Board

  • hageneriksson hageneriksson Apr 18, 2013 11:49 AM Flag

    disappointing Q2 guidance - revenues just in line with estimates, margins will remain weak

    very disappointing given the recent pick-up in book-to-bill ratio - cash is also down significantly

    given the recent run in the stock this one is clearly due for a very sizeable correction as the fundamentals can't support the stock price here. Management promised better times ahead so I would look to scale into the stock below $10 here. Remember they are paying a nice dividend.

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    • Margins weak! Dude seriously, at 51% you call that weak? 99% of companies don't have 40% margins let alone 51%, yer smokin crack! As far as CY the sell off is based on future demand. They are a supplier and if they guide lower it's because there's a slow down coming, and the market is getting ahead of it by selling off. $8.42 is where you back up the truck! I plan too

      • 1 Reply to augidog8407
      • Perhaps you should listen to the conference call replay first before making clueless comments here. The sell-off is almost solely based on margin concerns given the poor eps guidance going forward. Management guided for accelerating demand from Q2 to Q4 so clearly a slowdown is not the problem. The problem is that despite good demand they are not able to recover lost ground on margins which were in the mid 50s last year. That's why investors are selling.

        It doesn't really matter which kind of margins other companies have - Cypress margins are going down and obviously will stay down and this doesn't fit into many investment premises as evidenced by the sell-off on giant volume.

    • Its time for Rogers to leaave. He is more interested in poltics it appears

    • Listening to the conference call I guess only the high dividend yield will hold back analysts from downgrading the stock here as short term revenue and margin guidance looks just painfully weak.

      Analysts on the call are really unhappy, would expect very negative commentary tomorrow.

      Accordingly stock is taking a big hit today and might go down further as investors move to the sidelines given the very low profitability outlook (it's really a shame I have to admit).

      Would still stick to the scale-in strategy. In the end things will get better over time here and the dividend looks nice.

    • analysts obviously unhappy on the call complaining big time about margin guidance

      • 1 Reply to hageneriksson
      • Actually, not sure what give you the idea analysts are unhappy during the conference call. I assume some are and some are not. IMO, the key point is book to bill ratio is 1 and lead time is 4~6 weeks. (more like 4 weeks than 6 weeks. Utilization rate is only 64% if I remember correctly.) Any forecast they give can change big in 24 hours. (Just look what happened this past Q's results.) TJ & Co. seems to want to guide very conservatively because of it. The near 10% price drop is done by traders who make money on volatility which is not something unseen before. I'll be buying more at this level if I can squeeze out some cash in my portfolio

        Sentiment: Buy

10.55+0.06(+0.57%)Nov 27 1:00 PMEST