Slow down, Junior. It's a marathon not a sprint. Are you really surprised there's been no preannouncement? If so, take a breath, and think about that mentality for a second. It's not supportive of being a successful investor.
Toast...in my future pps modeling I have always assumed swks would see a contraction of its trailing PE over the next couple years on the basis of growth prospects slowing like in the normal course of any business. However, recently, I have begun to think swks PE may very well still be in an expansion mode for many of the reasons you mentioned. In addition to your reasons, I believe multiple expansion is in the works for swks due to multiple expansion we are going to see in the overall stock market...currently at 16, and heading to 20, IMO. Any multiple expansion doesnt last forever, but I think swks' PE will expand from here before pulling back a couple years down the road. To see expansion, as you know, they must keep guiding higher...in the same way their chatter went from talking about an eps target of $5 to now talking about a target of $7. Did I hear $10?
Appreciate your posts.
From what I have read, RESN with SWKS, is working on a game changing filter solution for connectivity chip solutions...one that would build a significant moat around SWKS. If true, buying them would be a great move for SWKS. Definitely something to keep an eye on. Maybe add RESN to the portfolio?
FYI...If they hit their guidance for the 1Q (Oct - Dec) in the current FY2015, they will be at an annualized EPS of $4.72 for the current FY2015. So, your estimate of $5.25 for FY2016 (next year) may be VERY conservative. Nonetheless, I generally agree with your thinking...especially the $95 pps you mentioned.
They may purchase RESN. this was just mentioned on CNBC, and ive read about this possibility as well. These two are in a joint development relationship currently in the area of filters. RESN has a market cap of $58m, and their most consumer-direct product is wireless charging over wi fi from as far away as 20 feet.
Swks may view them as a way gain further competitive advantage in filter solutions and through a cool wireless charging solution. Both of which could quickly add to both the top and bottom lines for a buyout of, say, $80 - $90m.
Just a thought.
I wonder how truly competitive TQNT and RFMD can be with the increasing need for more complex connectivity chip solutions for greater bandwidth needs. Currently, this is swks competitive advantage. The answer drives directly at pricing power and profitability for swks going forward. I am a believer in swks...especially for the next 2-3 years.
I believe they will definitely put cash to work via buybacks and increasing the dividend. This has been the company's practice, and it should continue. An acquisition? That's anyone's guess. If it would add to their sales and profibility growth, I vote yes.
The only stumbling block I can imagine is if Apple or Samsung brought connectivity tech in-house by buying a competitor like TQNT. From everything I know from reading about connectivity tech, I believe this is HIGHLY unlikely. Swks would more than likely be bought for this purpose than any of their competitors. But, we might as well think about all possibilities while we're at it.
I'd like to see THE Ohio State University vs. Oregon. The Criminoles are highly annoying to me...especially Winston. Beating Bama will be a chore, but the Buckeyes have more going on than the average national observer realizes. We shall see. Go Bucks!!!
Most underestimate Ohio State. Not a good idea. Good chance they win. At the very least, take Ohio State and the 9.5 points.