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Cirrus Logic Inc. Message Board

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  • hageneriksson hageneriksson Nov 2, 2012 6:34 PM Flag

    Always and forever at the mercy of the big money. Earnings reports don't matter. It's all about who's time it is to get paid.

    the stock is down FOR REASON - and at least one analyst has been very right here as of late (Feltl & Co.)

    you have to look through elevated shipment numbers caused on the recent IPhone launch. The company already guided for numbers to come down significantly from the Christmas quarter peak.

    so what numbers are sustainable ? The answer is: nobody knows. Apple has to offer new or at least updated IPhones and IPads at least once a year and every new product cycle bears the very real risk for CRUS to be designed out of the new devices.

    Even if the company can maintain its current great ties with Apple they are still dependent on the new devices to be at least equal hit products like the predecessors were, otherwise revenues will come down.

    And even if these products continue to do well Apple is going to put additional pricing pressure on Cirrus as it is now forced to offer low margin products like the IPad Mini to stay ahead of competition. This won't be the last low margin device Apple is offering I guess.

    So there's not much to win owning CRUS stock right now - while looking very cheap from a valuation point of view the future bears nothing but big risks for the company.

    And think of what might happen to the stock if Apple's products are losing its fame over time? A look at the chart of GMCR might very well tell you.

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