SWKS ready for bite of apple iPhone

…is the headline of IBD’s New America column of 7/22/15.

…iPhone may be the gift that keeps on giving…already has a nice piece of iPhone 6, expecting refresh in fall…believed to have $5 of components in i6…[analyst] estimates that will rise more than 10%… (I guess to $5.50)
…develops and manufactures high-performance analog and mixed-signal semiconductors linking people, places and things across a rapidly expanding number of new applications…amp, attenuators, batter chargers, circulators, DC/DC converters, demodulators, detectors, diodes, directional couplers and infrastructure RF subsystems…
…in addition so smartphones and tablets, they support automotive broadband, wireless infrastructure, energy mgt, GPS, wireless networking…targeting internet of things…analysts say they also support Samsung smartphones and Chinese made smartphones…believe Apple accoutns for 35%-40% of business…analyst believes content has risen well in excess of 10% in recent smartphonesfrom Apple, Samsung, and Chinese OEMs…
increasing content in settop boxes and devices enabling connectivity in the home…
SWKS leader in RF component segment…main compentiors are Avago (AVGO), Qurvo(QRVO) and Murata Manufacturing (MRAAY)…
…bigbeneficial or growth smartphones in China driven by move from 3G to 4G…
…logged 9 straight quarters of double-digit earnings growth. Earnings soared 85% (to $1.15)and sales up 58% last Q. Analyst expect earnings up 55% to $1.29 when they report 7/23 (clearly in the past). Analysts see earnings up 58% to $5.13 full year 2015 and 16% gain in 2016. (Stock up 42% since beginning of year)…showing steady margin expansion and great organic growth, a rare combination and potent driver of chip stock ourperformance…
…benefiting for major trends: ever-more-complex smartphones, number of frequenecies for phones is exploding…3G used 4-8 frequencies, 4G uses 20-30 and this means more components like filters, power amps and switches…SWKS makes systems, so they benefit from the growing complexity - a one-stop shop…Future growth? - from emerging markets as well as from emerging handset vendors (China)…China has 1 billion wireless subscribers, but on 200 million on 4G…India is primed for smartphones…India + China = 2B potential 4G subscribers (say an analyst)…IoT can be bigger than mobile with 50B to 200B internet connected devices by 2020 maybe 20-25% will be wireless…
opening design center and research lab to focus on development of technologies targeting 4G and 5G and the IoT. CEO says with that “we are well positioned to extend our market leadership and further emport ubiquitous connectivity”…other key customers include google, Honeywell, GE and Nokia.

SWKS ranks #2 in its IBD group of Electronic-Semiconductor anufacturers and has a composite rating of 93 out of possible 99. (Qorvo #1)…


Ticker	Top50	Smart	Comp	EPS	RS	S+P+R	Acc	Group 	Group	Sector	update
		Select					Dist		Rank	Leader?	
SWKS		99	93	99	96	A	D-	Chips	2	no	7/22/2015

Pretty good, don’t like to see an accumulation rating so poor, it indicates institutions are selling.

http://stockcharts.com/freecharts/gallery.html?swks
http://stockcharts.com/freecharts/gallery.html?qrvo

7 Likes