Buy More Skyworks Ahead of Earnings?

Bought a nice position in Skechers 2 weeks ago and when they came out with blow out numbers today sold my expensive Illumina and bought more Skechers. Saul’s picks that I have bought have been golden!! But this post is about Skyworks.

Broadcom their partner in Bluetooth had blowout numbers and went up, they specialize in connectivity which seems to be the space that smartphone companies are buying and not making in house.

Their other partner Qualcomm on the other hand lost it’s socket and said that it looks grim for chips in the smartphone space because margins are being squeezed by the big dogs (Apple and Samsung)

With Skyworks coming out with earnings next week and you have Broadcom in the connectivity space saying the suns shines and Qualcomm is saying the sky is falling, which way does Skyworks go?

With Skyworks being more of a connectivity enabler I’m leaning on them shocking the street like Skechers has. What do you guys think?


I am not sure that I want to do timing around earnings, because I seem to get these things wrong. I think I would be better off if I did not look at price jumps around earnings (but I do).

Anyway, do you already have SWKS and are you happy with its size in your port? For me SWKS is 4.90% of portfolio, and that is a pretty good allocation for me, I would not want to force it up too much higher. I also have a SWKS $80 11/20/15 put open that would increase my allocation if assigned.

Think about this in the big picture of what you want in your port. I expect SWKS to be a winner but I want to be careful about my allocation and my tech allocation (when my other big holding is AAPL, and they may move together).


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