Our first idea is a semiconductor company that beat analysts’ earnings by $0.15 last quarter. Our second recommendation is profit-taking on a previous recommendation.
Cirrus Logic (CRUS)
From Nate’s Notes
Though I will be forced to change my tune if the stock breaks below $50 in the days and weeks ahead (and despite how sharp the recent sell-off has been), I have to say that I actually like what I see in the chart, as I believe it is a great example of the sort of short-term volatility that we’re hoping to see as part of our belief that we are, in fact, in the throes of a frothy, blow-off phase for the market.
For its first quarter, Cirrus reported revenues of $320.8 million and net income of $42.9 million, or $0.64 per share, as compared to revenues of $327.9 million and net income of roughly $35.1 million, or $0.52 per share, in the same period a year ago. CRUS is now a strong buy under $52 and a buy under $60.
Nate Pile, Nate’s Notes, www.NotWallStreet.com, 707-433-7903, August 11, 2017