Given its multipurpose functions, I can see Apple TV being just about as revolutionary as the iPhone was in 2008. Who knows, this could cause another tripling of Apple's stock price in 2-3 years.
Skyworks GEO David Aldrich was on Cramer's Mad Money tonight. Boy, he sounded really excited and optimistic about the future. He really emphasized the very popular "internet of things" theme whereby everything you own will be connected to one another....your phone, watch, refrigerator, car, laptop, thermostat, home security, etc. He also mentioned that Skyworks has an outstanding portfolio of chips for many aspects of any given device, not just for one aspect....a very "systems" oriented set of solutions for many clients and their products. Most importantly, his belief is that we are still in the early stages of this "connectivity" revolution....of course, hinting that Skyworks stocks still has a long ways to run. He came across as a very convincing articulate salesman for the company. Of course, Cramer is really high on the company as well.
Yeah, I saw that after hours trade on Nasdaq's website. One single share was traded at $34.10. The rest were traded all in the $32 plus change range.
Sorry, I meant that you think that FY15 will be flat in unit sales compared to FY14? Mine second sentence in previous post was written in error. Also, it was FY14, not FY15, that sold 170M iPhones.....I should proofread my posts first. Sorry.
Grade, I'm really surprised by your projection for iPhone unit sales this year. You think Apple's iPhone unit sales number in FY15 will be lower than FY14? Really? In their first quarter of FY16 (past Dec qtr), they already sold 74 million (compared to 51M last Dec), which is a 45% increase YOY. And analysts are expecting around 54M for the March quarter, where it was 43M last March qtr. That's about a 23% increase YOY. These two quarters already make half the fiscal year's sales. FY15 Apple sold about 170M iPhones. Many analysts are expecting 220-230M in FY16. That's a very nice 32% jump FY over FY. How many are you expecting that they sell this FY16?
Grade, if the $60-$90 range comes to pass in the next 12 months, oh boy, many of us here are going to be sitting very, very pretty. I know you have an enormous amount invested in Cirrus, and Al does too. I do too but not close to what you have. And looking at your numbers, it's hard not to think this would come to pass at least in the next 12-18 months. With the large projected increase in iPhone sales this year, inroads into Samsung's phones, substantially increased content value per chip, and the migration of the chips into the high volume mid-range phones and hopefully eventually into the lower-end phones, I can imagine your projection of the $4.00-$4.50/share proforma earnings with a 15-20 PE coming to reality....then multiply the two sets of numbers together, yes it does come out to $60 to $90.
Thanks MK, how did you post that without it disappearing? Did you copy and paste? That was pretty much what my second post was going to be.
Doug.....nah, it's not mentioning Cirrus. I think it's when you copy and paste onto the boards. When I did that "test" post, it made it through. And when I said "Yahoo is eating my posts" it made it through too. Obviously I didn't paste text on these short posts. But I've attempted like 7 times now to copy other snippets from that Cramer article to paste here, and it disappears every time. But somehow that first post on Cramer made it through eventhough I copy and pasted. But the other 7 times I tried to paste the second half of the article, they all have disappeared. I had no idea that Yahoo message boards are able to detect when you copy and paste. And I would assume this deletion feature is in there because they don't want to violate copyright laws from the other websites with the articles.
For some reason, Yahoo keeps eating my the second half of my post where Cirrus is mentioned..
These are snippets I've cut from a full article.
Jim Cramer -- Connectivity Is the New Frontier, Semiconductor Group Is Fully Engaged
NEW YORK (Real Money) -- If we look at Micron (MU), Qualcomm (QCOM) and Intel (INTC), three of the hottest semiconductor stocks of last year, we come away with a profound sigh. It's simply not happening for them and we have to, therefore, wonder about the group. Same with once-popular SanDisk (SNDK), Western Digital (WDC) and Seagate (STX), the first a putative king of flash memory and the second two the dominant disk-drive companies.
They are all down for the year, many by double digits, and they are flashing red for the components sector. Does that mean the semis and their brethren are finished, some sort of secular decline?
Hardly. It just means these companies are levered to the personal computer, which is in secular decline, and not the revolution in connectivity, which is the most powerful trend in tech today.
The truth is that the semiconductor group is about as strong as I have ever seen it, a fantastic leadership sector that is dominating all tech at a time when software, hardware, the Internet and the cloud are all in variation degrees of pausing and churning that gives a total false impression of the group.
Which are the standout companies in connectivity? First and foremost I like Skyworks Solutions (SWKS), which has become a colossus, a dominant parts maker for handsets, which have become the dominant way we get our information. This company's stock is up 40% for the year and kudos to Bryan Ashenberg and his Growth Seeker newsletter for pointing this one out to all of us. Skyworks, run by the amazing David Aldrich, is emblematic of all the good in semi world as its products dominate everywhere there are connections, including the smart home, the smart medical provider and the smart car, the wearable and aerospace defense. These are the frontiers of the future and Skyworks (continued on next post)
First of all, a big chunk of that is Cirrus going from a NOL situation (net operating loss tax carry over) to a situation where they have to pay about 30% taxes. To remove 1/3rd of your income is a big chunk. Secondly, the net income estimates will most certainly be revised upwards.
Awesome MK. Good stuff. Yes, that bodes well for Cirrus. I still think that Carl Ichan may be the forerunner in all this. He appeared over a year ago and bought massive amounts of Apple, thinking it underpriced. It has run up tremendously since then. So he was right. It was greatly undervalued. He now announced a couple of months ago that based on his metrics and valuations number crunching, in a letter sent over tweet, that Apple is really worth $216 NOW!! Not a future price target.....but NOW, if the market were truly efficient and rational on valuating Apple. If this were the case, Cirrus would be leveraged and rise even higher than a 70% rise from Apple.....so maybe 100% at the very least....we're talking $65-70 Cirrus stock price. OK....I'll stop dreaming now. LOL
Grade, hopefully you didn't read that Jason appearing on Cramer's show is what tanked the stock. That was not my point. I was simply echoing what you said earlier that Cramer giving Cirrus a nod is not always a good thing. Yes, the very first mention did zoom the stock upwards. I mentioned Jason appearing on his show just as a point of fact, not that his appearance lowered the stock. My feeling is that over the next year or two, Jason will appear on his show (if feathers are no longer ruffled), after a huge runup in stock price....and Cramer will be kissing Jason's behind. I predict that in the next 18 months.
Cramer did help us back in 2010/2011. Remember that? He mentioned Cirrus on his show, and that's when Cirrus took off leading up to the peak in 2012. He's mentioned Cirrus a couple of times since (and once interviewing Jason) and Cirrus really haven't reacted positively.
Oh well, I just checked Nasdaq pre-market again. Only about 700 shares over 7 trades so far....the quick jump wasn't as big of a deal as I initially thought. The last few trades were right on $34. Still think we should trade positive today, but not as big as I initially thought.
Jim Cramer is huge on Skyworks, first of his favorites....but they've run up so much and so fast, not sure I would invest in them now. SWKS sports almost a $20 billion market cap. Whereas, Cirrus is still at a very modest $2 billion. Cirrus is mentioned at the very bottom of the article. I've cut this article to pieces. If you want to read the whole article, just go to the headlines section for Cirrus here on Yahoo.
......No. Cramer said this decline in semiconductor stocks is reflective of the long-term decline in personal computers, or PCs, because most semis are tied to them. He thinks that while the popularity of PCs is dwindling in the long term, it is not dying out for semiconductors.
"The truth is that the semiconductor group is about as strong as I have ever seen it, a fantastic leadership sector that is dominating all techs," Cramer said.
So while the software, hardware, cloud and Internet stocks might all be at a stand-still or giving investors false impressions through stock churning, Cramer doesn't think that will be the case for semis.
The key to the semis? Connectivity.
As homes and cars around the country are becoming more involved with the revolution of the Internet of things, Cramer has his eye on a few semiconductor stocks that he thinks will blow it out of the water.
First, is Cramer-fave Skyworks Solutions.
Additionally, now that Cypress semi has completed its merger with Spansion, Cramer loves what it has to offer.
A few other stocks that Cramer likes in the semi space are NXP Semiconductors, Cirrus Logic and Avago.
I just noticed....$135 target price for Apple by Cowen? Apple was at $133 just 3-4 weeks ago. It's now at $127-128. Is this price target really realistic? I would assume a price target like this is for a 12-18 month timeframe. That's the usual timeframe for a price target. If Apple is at $135 at 18 months from now, that would be a travesty. I would expect realistically more like $150-180. Carl Ichan, is expecting $216....not 12-18 months from now....he thinks Apple should be $216 NOW. So if anything, a "price target". So how in the world is this "$135" price target by Cowen good news? They are "catching up". They can't raise the target too high, because it would completely expose them for being so wrong for a good period of time during the recent Apple run-up. Man, this whole analyst prediction game is so wrought with incompetence and general inability to predict. And of course, many here think they can do better than the pros with billions backing them.