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Cirrus Logic Inc. Message Board

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  • hageneriksson hageneriksson Nov 2, 2012 7:32 PM Flag

    Next fiscal years estimates are too low!

    prefer to ignore them though.

    even if true the projection is meaningless as the company doesn't hold its fate in its own hand anymore. Cirrus is just riding Apple's coattail now.

    Will the IPhone 5 be an continuing hit ? Very likely, so CRUS might reach your projection...

    Will CRUS be in the next generation Apple products ? Who knows at this point...

    And if they make it into the next gen products how much additional pressure will be put on the gross margin ?

    And will the next gen products even bigger hits than its predecessors to allow Cirrus growing revenues and eps despite lower margins? Nobody knows but this is becoming more and more unlikely as Android already has 75% market share in most regions of the world except for the US.

    So there are many ways Cirrus might lose the game. And no chance to win on its own. So I don't know why investors want to own a stock carrying so much future risk and offering this little rewards.

    The easy money on this one has been made already but for know skepticism is here to stay for some time going forward.

    Bottom line:

    This is an ultra-high risk stock due to the Apple relationship which brought the company back in the game a few years ago but at some time in the future this move will fire back at the Cirrus.

    Investors obviously are thinking this time will come rather sooner than later now.

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