Monday August 20, 2012
by Nate Pile, editor Nate's Notes
I still believe that at some point, the European debt crisis is going to be blamed for a global “panic sell-off” and our housing market here at home is likely to experience another leg down.
However, none of that matters if the market is collectively saying it wants to go higher. Thus, for now, the time has come to make some new buy recommendations. Here's 3 new buys in the semiconductor sector.
These three stock should grow and prosper as the shift towards “mobile computing” gathers steam.
Cirrus Logic (CRUS) has been around since 1984, and it is a name I have looked at a number of times over the years.
The company, which focuses on audio and energy systems, generates a bit over half of its revenue via Apple products.
This will be bad news if/when Apple falters, but as long as Apple continues to lead the pack in terms of defining what new products look like for the industry as a whole, Cirrus ought to do very well.
The stock has already popped a bit; but, if things fall into place for the company, I believe there is plenty of upside potential left.
One of the main areas of business for NXP Semiconductors N.V. (NXPI) is designing chips that are used in the up-and-coming business of “mobile payments” in which consumers can essentially use their phones as payment systems by simply waving them in front of a specialized scanner.
NXP is involved in both the Apple and Android ecosystems, and I believe it also has a bright future.
Finally, I present to you SkyWorks Solutions (SWKS), which is also involved in chipsets for both Apple and Android products.
Though I have read a number of interesting articles suggesting that the stock is overvalued, I personally think it is currently extremely attractive based on a combination of current fundamentals, the company’s outlook, and the chart pattern the stock is currently tracing out.
As is always the case with all of our new recommendations, you are encouraged to only buy “a portion of a position” in each stock for for now, with plans to average-in over time.
Learn more about this financial newsletter at Nate Pile's Nate's Notes.