Mr. Market has gotten into a depressive phase because Apply won’t be selling 900 billion iPhones this year, or however many Jim Cramer said they were going to sell, so a bunch of related stocks have gone down with it, including Skyworks (SWKS). The share price is at a 52-week low, but I don’t think this price is justified, and it’s likely to go back up at least 10% when Mr. Market takes his meds.
I know Saul sold his shares in favor of faster-growing software stocks, but I held on, and it’s now about 5% of my total holdings. Now I’m thinking about bumping that up a bit.
I agree that the market seems to have overly punished this one due to the Taiwan Semiconductor quarterly report and forward guidance…I had actually thought it had gotten to too low a price prior to the fall last Thursday and had purchased some $105 May 18 2017 calls…then after the drop, I bought some more of those same strike and expiration…which have further declined in value.
So, I agree that it seems like a steal at present prices, but I had some crappy timing with buying the first of my calls the very day before the Taiwan Semi earnings announcement…thus, I will simply say caveat emptor and I won’t be surprised if there is a nice announcement and share price pop with Skyworks’ soon to occur earnings announcement.
Long SWKS and SWKS call options
I shorted a $90 put just before the share price went below $90, but I’m not too worried. From what you’re predicting, it will probably expire out of the money.
Earningswhispers.com says consensus earnings expectation is $1.60, and whisper number is $1.63. NASDAQ.com says consensus expectation is $1.46. Last years Q1 figure was $1.33.
More significantly, earnings have increased sequentially in each of the last 3 quarters, and that’s with only numbers for the last 4 quarters in front of me.