I will close another position to add SWKS shares this morning. The dread from MCHP does not apply to SWKS, and I appreciate the company saying exactly that in other words. It's a stock pickers market (always is, btw), and SWKS should be picked. It seems to me, any pps close to $50 is a great place to buy for the long term (over one year). So, that is what I am doing, fwiw.
Respectful Correction...cash per share is currently about $5.22, if you assume $1B in cash. So the PPS less cash is about $40.10...divided by FY 15 forecasted EPS of $3.90 gives a forward PE of 10.28. TTM earnings are $1.90, so the TTM PE less cash is 21.1. Not trying to nitpick. Just trying to put the correct numbers out there. 😀
Here's hoping their performance and guidance comes in strong and trumps MCHP's (whoever that is) gloomy view. INTC could reverse the trend in semi's we saw this week of down 12%.
I am no technician. I know just enough to hurt myself. :). Any technicians have an opinion about a possible double bottom in SWKS over the past week? From here, can we expect a quick return to $55-$56? I'm always willing to learn about technicals even though I am a long termer.
I bought at these levels last week, and have no dry powder left. It's easy to talk about buying dips. But, when they happen, well, that's a different story. :). Right now it's about 11% below the 52-week high...again, a dip worh the buying, IMO.
You had me until you mentioned shorts. What shorts? There is no short interest to speak of, so short covering will not be a factor in any pps increase.
the needed and healthy wash-out all stocks experience on their way MUCH higher? I hope so. I have been buying in the high $52's and $53's. This pullback is significant for a company with a growth story like SWKS. So, to think it will bounce from here is reasonable, IMO. Only time will tell, of course.
One more thing...for good companies like SWKS, buying the downgrades or the newsless pullbacks is usually a good idea. On this basis, I added SWKS shares yesterday at $55.86 (jumped the gun a little) and $53.70. By the end of this year, I am confident those will turn out to be good buys.
Well, you know how it works. So, play by their rules. You have no choice after all. IMO, the best way to do that is hold great companies long term through the games, because one can never know when hedge fund games will be played. But, if you choose to attempt to time the market (good luck, btw), then you better take profit at every opportunity...for any stock you're in.
I agree with you about China. I bought more today...a bit too early at $55.90, then at $53.69. I am in it for the long term.