For those of you still following SWKS, up 4.1% today.
http://www.investors.com/news/technology/broadcom-skyworks-j…
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If I did not have a full holding I would say ‘Good grief Rodney, don’t tell everybody!’.
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For those of you still following SWKS, up 4.1% today.
Thanks Rodney. I am still following SWKS and, in fact, bought more shares earlier this week. I suppose I’m one of the few on this board who believed management many months ago when they said things would be getting much better!
I suppose I’m one of the few on this board who believed management…
I think there’s more than a few of us, and I have Saul to thank for that! I would have never known about this company without this board, but I have a full+ position in SWKS and plan on riding this company to outsized returns for many years to come!
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I think there’s more than a few of us, and I have Saul to thank for that! I would have never known about this company without this board, but I have a full+ position in SWKS and plan on riding this company to outsized returns for many years to come!
I plan on being right there with you foodles!
For me, the point is that SWKS, such a feature of the portfolio before, once again emerged from my screens and DD therefore I had no choice but to invest. (Nowadays, to have anything emerge at all is as rare as hen’s teeth, which makes it all the more welcome.)
But while I certainly hope to ‘ride this company to outsized returns’, I think it is most unlikely to be ‘for many years to come’. I only hope for a lesser (more caution about) re-run of last time: recognition - price increase - valuation still warranted by fundamentals - greater price increase - momentum takes over - greater price increase - definite valuation problem arises - slight business uncertainty - fairly generous mental stop-loss quickly noted down on desk - more uncertainty - alarm - mental stop-loss tightened - sale. It’s tech.
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…while I certainly hope to ‘ride this company to outsized returns’, I think it is most unlikely to be ‘for many years to come’.
Strelna,
I do agree, that it needs to be watched as it is tech that can obviously be displaced by a competitor “relatively” easily. Also, the fact that 40% of their sales are from the iPhone is always a risk if they get designed out of that or iPhone sales take a hit. But for me the growth I’m looking for longer term is with the IoT segment, I remember reading recently that there have been over 1B total iPhones sold, but that there are predictions of over 50B IoT devices by 2020. Sorry, no link, as this was just from my memory (and thus, could be wrong), and obviously could be an exaggerated, incorrect number that isn’t hit, but the point is, IoT devices are going to be numerous (definitely in the B’s) and their proliferation really hasn’t even gotten started yet, and I’m betting SWKS will be in a lot of them.
I started buying shares in the $90’s as this one was going down, continued buying in the $80’s, $70’s, $60’s, and high $50’s. My position did not look good a year ago, or 6 months ago, but that’s not why I was buying (to sell in 6 months or a year). All purchases are now positive, some up over 60%. I wouldn’t guess what the stock price will be in 6 months or a year from now, but I think I have a much better chance of the stock price being significantly higher in 3-5 years, than it being significantly lower, and those are the odds I’m willing to invest in.
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Hi foodles.
“Also, the fact that 40% of their sales are from the iPhone is always a risk…”
I agree that it is a risk but, to be technically accurate, 40% of their sales are to Apple. Probably a lot of that goes into the iPhone, but it might fall short of 100% of the 40%.
A December 2016 Skyworks investor presentation pegs IoT connections at 25+ billion by 2020. From the Skyworks home page, click on the “About” tab, and “Company Presentation” is one of the available links (it opens a PDF).
I don’t have a crystal ball, but I anticipate that the future will feature more semiconductors and connectivity than we have today.
Thanks and best wishes,
TMFDatabaseBob (long: SWKS)
Coverage Fool
See what a “Coverage Fool” does here: http://www.fool.com/community/community-team.aspx
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Peace on Earth
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Bob, thanks for the corrections to my not quite correct numbers, I appreciate it.
The gist of my post still stands, though, billions of IoT devices should mean a LOT more business for SWKS over many more years.
Foodles: it would be wonderful for both of us if you are right and I am wrong - here’s hoping!
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