DS...I appreciate your comments. I would suggest when earnings estimates are increasing like they are with SWKS, pullbacks will be very shallow. No one knows for sure, of course, but a 3% - 4% pullback from $84 may be best case scenario for your next entry. In fact, I'm in the camp that says this recent move is break out, and will take us to $87 before a 3% (or so) pullback.
My two cents.
Put a 22 PE on the non-GAAP EPS for FY 2015 to get a good idea, IMO. 22 * $5 after they announce late October or early November this year....conservatively speaking.
Even on a down day. Buyers are sitting there waiting to scoop up more shares. With $7 EPS on the horizon any meaningful or sustainable pullback is VERY unlikely in the foreseeable future.
Traders who are lumping SWKS into the semi sector of today, and the semi cyclical trading patterns seen over the past decade are really missing this one. This is an early-innings story of growth in connectivity and SWKS is providing the best in class solutions.
I agree. If RESN is what I have read they are, and their relationship with SWKS is as close as I've heard, this acquisition seems likely. The beauty of owning shares in a company with great leadership, like SWKS, is one can trust management to make the the best decisions for the business AND the shareholders.
SWKS recently announced a $300m buyback. This takes shares out of the float. A split, which adds shares to the float, seems very unlikely any time soon (if ever).
$5.40 EPS non-GAAP could happen in FY2015...$5 seems highly likely at this point. The non-GAAP ttm PE has ranged between 20 and 24.5 of late. That would be a nice pps in a year.
I agree. So, why are you splitting hairs and waiting for $80 to buy? 😀. Just kidding...I know buying is a very personal thing. But, given your high opinion of SWKS' future (which I share), I wouldn't be sweating a few bucks here and there to buy.
Toast...tough to call the right buy levels. IMO, if I think there is a really good chance of this being $100 within 12 months, I buy, and don't worry about missing it by a few bucks. That's why I have been buying this week. Fwiw.
I have learned the hard way over the years. But, when you own a good company and the stock pulls back, at the very least, DO NOTHING. If possible, buy more. Patience is the key for me...and controlling fear. For instance, during that 25% pullback in SWKS back in October, I bought more. It was scary, but I held my nose and added shares. Someone once said, no one becomes wealthy from panic selling. 😀
Not that anyone could give a rip, but I have added 1010 shares at an average pps of $82.19 this week.
I see $100/share by the end of 2015, and possibly by mid-year. So, I'm buying more for long term hold.
Good luck longs!
I believe the context of the question was related specifically to RF semi's. In RF there is high, medium, and low frequency chip systems. Each of SWKS, avgo, and qrvo specialize in one or two frequencies. The implication, and what the analyst was asking, is there should be less pricing pressure in RF chips now that each player has found their niche and is focused on it. Others with more technical knowledge of RF chips please weigh in.
Nonetheless, I totally agree with you...not all semi's should be lumped into a pile. Analysts are really sorting this out of late. Even Cramer is blowing that horn.