"It would appear that something very fundamentally broke down in the relationship between Apple and GT Advanced," Raymond James analyst Pavel Molchanov said in an email.
What I don't understand is how they can go from 333 million in cash on 6/30 to 85 million in September. The only explanation I can come up with is Apple decided to pull out. I was thinking of buying some shares but wanted to wait for the Iphone 6 and of course now am glad I didn't. This is why sometimes its important to wait for the news to come out (Ie. knowing INVN was in the Iphone 6 teardown). I imagine some of the weakness today is related to GTAT but this is different in that under 20 I believe the market is giving little to no weight to apple business. This just might be the last chance we have at sub 20. I feel sorry for some of the GTAT stockholders. Some on that board are saying they lost six figures. Ouch.
Ah you beat me to it. I posted the whole article from street insider.
iPhone but ended up with little-to-no volume. We believe Apple is prudently taking out second-source insurance, but given both Apple and Samsung have decided to work primarily with INVN, we believe STM’s performance lags INVN, at least modestly."
The firm has spoken recently with their contacts at STM who continue to be optimistic regarding their participation at Apple. However, they are also fairly quick to note that they never expected to maintain full market share and that there are plenty of other sensor opportunities outside the gyro/accelerometer, he said.
"In summary, we believe INVN continues to be the largest share gainer in smartphone MEMS sensors, a trend which we expect likely continues at least for the near- to intermediate-term," Acree said. " We believe noise and uncertainty regarding Apple has created an opportunity at a time when INVN is poised to put up record quarters in both September and December."
The firm maintained a Buy rating and price target of $29.
For an analyst ratings summary and ratings history on InvenSense click here. For more ratings news on InvenSense click here.
Shares of InvenSense closed at $19.07 yesterday.
Ascendiant Capital analyst Cody Acree is the latest out to defend InvenSense (NYSE: INVN) amid worries about the company's participation in the iPhone 6 and 6 Plus.
Acree notes shares came under pressure after a tear down suggested that the 6-axis accelerometer/gyro combo could have been lost. "We believe this speculation is significantly overdone and would recommend investors take advantage of the current share weakness as an opportunity to either initiate or add to positions," he said.
The analyst said the initial concerns appeared to stem from Apple’s decision to add an architectural oddity with the usage of a second 3-axis accelerometer from Bosch. "Some have speculated that this added sensor was included at the last minute to help offset a technical problem or instability with Invensense's combo, and that if a problem existed it would lead to INVN being replaced," he said. After looking closer at the specs of each part, what makes most sense is that Apple chose this approach to reduce power consumption and improve performance. In its normal mode, the Bosch accelerometer consumes 130 µA to INVN’s 450 µA. The Bosch accelerometer also starts up from sleep mode in 1.3 ms versus INVN at 20 ms. Therefore, for rudimentary tasks such as screen orientation or a pedometer, the Bosch part is cheaper and better suited, while INVN solution is then tasked to higher performance functions such as gaming, where the power tradeoff is necessary."
Other than a major technical issue, it does not make sense that Apple would go through the time and expense of designing in INVN only to pull them almost immediately upon launch, he said.
What they do believe is likely is that STMicro (NYSE: STM), who had been Apple’s primary gyro supplier in the past, has been qualified as a second source to INVN. "While this is incrementally encouraging for STM, the question is a matter of volume and how Apple decides to split suppliers, if at all. Remember, INVN was a second source for the prior i
You can be even easier than your reply. Last two CC's the company predicted 25-35 percent revenue growth in fiscal 15.
Thanks for posting this. Some google searches show this problem going back to when the phone came out and YES its speculated the bosch chip is what is used for the camera interface as you explain. How come the analysts cant figure this out???
"The Bosch accelerometer is able to operate at a lower power than the InvenSense and it has a "much faster" cold start up time, at 3ms compared to 30ms, allowing it to be used when complete six-axis integration is unnecessary. Chipworks speculates that it may be used for tasks where higher sensitivity is unneeded, perhaps for rotating the screen from landscape to portrait mode or for pedometer functionality. "
Got another 1000 at 18.98. I have now largely rebuilt my position. Got out at 24 - 25. Started buying at 21 and below. Average cost is around 19.75. I will gladly take it.
Unlike Bosch which was having problems with apple (and it was reported this past summer, perhaps one of the reasons INVN got a slot) I can find nothing doing google searches on INVN and apple having problems. The analyst should be required to say where he got his information. This reminds me of when in early 2013 there were analyst rumors that INVN lost Samsung. The stock briefly went below ten bucks which turned out to be an absolute gift. After the rumors proved to be not true, INVN traded in the low teens before slowing moving up. This now seems to be no different. I am very suspicious of this all.
I added more at 19.34. This is stupid. We went up over 26 on apple rumors and now that its confirmed the stock is getting priced around where its as if they weren't in the Iphone. I cant wait for the CC. I think we are going to be at least in the low 20's. There is strong support around 18.50. If it comes below 19 I will keep buying.
Sub 20 now is a no brainer. Where before a lot of apple growth was priced in at 24-25, INVN now is getting priced as though most of the apple growth has disappeared. When it went to 17 after the first quarter conference call I was saying it was undervalued on Chinese prospects alone. Don't forget they spent about a buck per share in cash for two acquisitions that should be accretive to earnings in the not too distant future too.
Added 2000 shares today. 21.40. Not a bad entry with just china growth prospects never mind apple.