Secondly - at 20 bucks a share ex-cash and investments you are getting INVN at about 20 times this years earnings with 36 percent projected earnings growth this year. That's important. This year as in fiscal 2015. The I think the fiscal 2016 earnings estimates will be north of a buck. How much I don't know. But the way this trades we will be in the mid twenties especially if the CC is what I think it will be.
The 3 cents is nothing. What counts is the guidance and I am not in the least bit worried when I read "significant customer ramps in the coming quarters." That's what we want. I could give a damn about the 3 cent miss.
So they beat revenue estimates but were short 3 cents a share it looks like. This is not bad when you see "significant customer ramps in the coming quarters". What will move the stock is the guidance and Q&A in the CC.
Yes. I have seen articles that say a deal was struck and articles that say it is "rumored" a deal was struck.
I love that the article says 49 percent of people polled think wearable tech is a fad. That's what I said about the PC in 1984 (who the hell needs a computer) and about the internet in 1993 when our office geek gave a demonstration (what are you going to do on it) and the Iphone (screen is too small.) Luckily my "vision" didn't stop me from investing once it was clear these technologies were going to be more than fads.
Apr 22, 2014 4:53PM ET / Technology
Everything We Know (So Far) About iPhone 6
"It is expected that the iPhone 6 will use the same 8-megapixel sensor in the camera as in previous models. It is rumored that the iPhone 6 will benefit from Optical Image Stabilization, as Apple recently struck a deal with InvenSense, a company that manufactures an OIS gyroscope."
Apparently yahoo will delete my post if I try to include a link. Hope to hear more about this in the CC.
Depending on what Apple unveils it could be faster than a couple years. I am hoping what the Iphone did for phone sales the Iwatch will do for wearables. Just a day or two ago, Lou Dobbs was showing the Google Glass on his show. The big drawback is many people don't want to wear it in its current design. Too conspicuous. Google is working on making it less so.
I am saying rumors of the Iwatch will probably propel this stock to 30 plus. If we are not in the Iwatch then watch out below. We will in short order be back down here. And just coincidently if you do some checking you will see the Apple rumors started May 1 of last year with some financial press articles. What has kept this stock up here is the 25 to 35 percent growth projection. If not for that we would be down in the teens. I have seen it with other stocks. Apple giveth and Apple taketh away (when apple cancels your contract or the rumor proves not to be true). I don't expect INVN to be any different and I will have stops in place to hang on to my apple rumor driven profits.
I hope you are right. All the other other Samsung suppliers I track have reported better than expected results and are reporting increased traction in China. I think INVN's strategy of targeting the mid to low tier is the way to go for future growth. I see STM talked about incorporating mics into their MEMS chips so INVN made a good buy in getting the mic business from analog. INVN has lowered expectations so much for this quarter that I would be surprised that they don't beat estimates. What everyone will want to hear is more information on that 25 to 35 percent growth going forward without Apple. If any hint of apple or another large OEM going forward is given I will again say this stock will hit 30 by late summer. If an Iwatch is announced and INVN isn't in it, look to be back down where we are now with a 30 percent loss in short order. That's why I will have stops in place. I am not going to ride it down like I did when the last Iphone 5 rumor didn't pan out.
"Reuters) - RF Micro Devices Inc, whose chips are used to connect mobile devices to networks, forecast quarterly results above analysts' estimates due to higher demand from smartphone makers like Apple Inc and Samsung Electronics Co."
Bodes well for INVN. Both SYNA (touchscreens) and SWKS (another RF supplier reported quarters above expectations. I believe both supply Samsung along with RFMD. So if all these other supplier with sockets in Samsung products are doing well that gives me confidence for INVN.
I am looking at the last couple CC's and I don't see it. I see a lot of analysts trying to get a handle on product sales breakdowns but I don't see Cheil specifically mentioned.
Look at GTAT for a clue. They announced a deal last November to supply sapphire glass for what many believe is the up coming Iwatch. Their earnings estimates going forward doubled. I don't know if we go up on a P/E basis but the earnings estimates for INVN would certainly go up and the stock price would follow. So lets say a 25 forward P/E on 1.50 in earnings and you a get stock close to 40 bucks. Its fun to speculate on what might happen, but I wont be buying that new car just yet.
If you look at the chart I believe that dip in September was the news INVN was not in the new Ipad and then we kept going up on continued Iphone rumors. And by the way those rumors last year started May 1 with press articles. I wouldn't be surprised if the same thing happened this year. I am still going to predict we hit 30 by late summer on similar rumors buoyed by the much anticipated Iwatch. If we are not in an Iwatch, then expect a 30 percent drop back down to where we are now.
That's what I said about SYNA and SWKS too when they got "stuck". They unstuck themselves. So will INVN.