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Rusty
12-26-2014, 02:04 PM
I love nice weather. In fact. This year up in Canada where I live - the grass is green and the girls are pretty. And yup - It's dead winter. Just a really green and warm dead winter.. :p

But you know what else I like? Yup. It's making a few bucks off a stock pick that you can use to buy that extra bottle of ketchup to ensure you never run out.
Heaven forbid if you run out of catsyrup. Ever make yourself burgers and find out your pantry has no catsyrup? MERRRO@WWW!!!! It sucks !!!
But when you have guys like Rusty picking stocks - it's kind of like an unlimited supply of free catsyrup. Your burgers will never be left alone.
Actually - screw the burgers. Let's have Steak!

Ok - so Listen up. Buy and Trade at your own risk. I am NOT responsible for your losses. If you need help - Consult your professional broker.
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Last week, I bought stock in Skyworks Solutions (NASDAQ:SWKS) at 69.07. I will sell it in 4 to 6 weeks at 79.53
Shares are up 150% over the past year. Cool eh ?

This chart. http://finance.yahoo.com/echarts?s=SWKS+Interactive#%7B%22range%22%3A%222y% 22%2C%22scale%22%3A%22linear%22%7D

Is like - Crazy. It's freakin Insane. It's like having the aliens pinned down in Subsector - owning the entire map - but then out of nowhere - a bile-rush takes out the command station - turning everyones head and having that amazing 10 seconds of victory yelling and laughing - and having that thrill of excitement. Sigh ... I love base rushes.. :)

Ok - so here's a question. Do you know anyone who uses an Iphone? Yes? Well then they spent money on SWKS.
You see - we all know that almost every device out there - from your car, to appliances. TV's to thermostats. will all be connected to the internet.
Now can anything out there change this trend? Heck no. No Freakin way Bro. Not at all. And this is why this tech company has a K1LL3R chart !
The PE is only 29.

Skyworks Solutions, Inc., together with its subsidiaries, build, create, market, and do all sorts of cool things to create mixed signal semiconductors worldwide.
Their product portfolio has things like amplifiers, battery chargers, curculators - whatever they are. Attenuators, DC/AC optocouplers. etc. etc.
I can go on and on but it's stuff that even I - a tech junky don't comprehend. These guys know their stuff. So I'll leave that to them.
What I understand is that these guys make "chips". No - Not BBQ, or salt and vinegar, but actual computer "chip".
And Samsung, Iphones, tablets, TV's, etc. etc. and many of the top selling devices use chips made by SWKS.
These chips help devices connect to other devices via wireless signals. ( the ones in the sky baby. )
Skyworks makes money in two ways. First is that we know growth of applications using wireless tech will keep on running like it has been. And secondly that this technology growth will make things better and faster. ( I want my music in 0.2 nano seconds. Waiting for 0.4 microseconds is too long !!! QQ ~!!!! )


In seriousness - Skyworks is really successful because of Apple. They have a long time relationship because they supply the main antenna for the Iphone ( with the mini amp that's coupled to it ). Apple is preparing to produce about 80 million new iphone 6's and that benefits their suppliers. Companies like Skyworks. And remember that with each version of the iphone, SWKS has more and more expensive components installed. So yes - they make money when more phones are sold - and they make more money for each phone that is sold.
About a year ago - I looked it up and saw that SWKS had about $1.50 worth of chips n gizmos inside each phone. Now - according to research - I can see that they have well over $10.00 worth of shizzle in each device. that's crrrrrrazzzzy!!!!!

Now - currently out there - we know that 50% of all handsets ( talking world-wide here. (( Atlantis excluded ) are still at 2G. They will move over to 3G-4G in the next four years ( analysts did this work ) and this will yeild in approximately 8M new handset sales. Yup. So save up. Those Iphone 8's are gonna be a doozy of a price!

So look at that chart I posted above. SWKS has really been super active since mid-2013. They have recorded double-digit earnings and revenue growth seven quarters in a row. And Analysts estimated growth to be far less. ( they are still on 2G ) Every single quarter - they have BEAT the projections! That's Incrrrrrrrrrredible!!

Metrics are awesome in terms of valuation.
The forward P/E is low at 13.6, with the 5 year expected PEG ratio at a very low 0.82.
SWKS is up exactly 51% up year over year - and 23% sequentially.

Fourth Quarter alone was $235.7 million. Up 81.4% from $130.3 million in the fourth fiscal quarter of 2013. That's Crazzzzzzzy. These guys are rockin!

On a non-GAAP basis, operating income for the fourth fiscal quarter of 2014 was $235.7 million, up 81 percent from $130.3 million in the fourth fiscal quarter of 2013. Non-GAAP diluted earnings per share for the fourth fiscal quarter of 2014 was $1.12, compared to $0.64 for the prior year fourth fiscal quarter. For fiscal year 2014, revenue was $2.3 billion, up 28 percent from fiscal 2013, while non-GAAP diluted earnings per share was $3.24, up 47 percent year-over-year. In summary:

Delivers Revenue of $718M, up 51% Y-o-Y and 22% Sequentially
Expands Non-GAAP Operating Margin to 32.8% (27.6% GAAP)
Posts $1.12 of Non-GAAP diluted EPS ($0.90 GAAP)
Increases Dividend Payment by 18% to $0.13 Per Share
Guides to $770M in Revenue, $1.18 of Non-GAAP Diluted EPS in Q1 FY15


“Skyworks is aggressively executing on our strategy to deliver sustainable, above market growth with diversified analog semiconductor returns,” said David J. Aldrich, chairman and chief executive officer of Skyworks. “Our advanced solutions are at the heart of mobile connectivity and the Internet of Things, and are empowering exciting new applications spanning mobile payments, to streaming music services, to on-demand media. Given our accelerating design win momentum and deep product pipeline, we have never been better positioned to grow demonstrably faster than our addressable markets and in turn, to deliver best-in-class financial returns.”

Skyworks’ Board of Directors has declared a cash dividend of $0.13 per share of the Company’s common stock, an 18% increase over the dividend for the prior quarter. The dividend is payable on December 11, 2014 to stockholders of record at the close of business on November 18, 2014.

“Fiscal 2014 was a record year for Skyworks as we exceeded key metrics in each and every quarter and crossed the $2 billion revenue threshold,” said Donald W. Palette, vice president and chief financial officer of Skyworks. “Based on broad customer demand and crisp operational execution, we are now scaling to more than a $3 billion revenue run-rate with annualized non-GAAP earnings per share approaching $5.00. Specifically, for the first fiscal quarter of 2015, we anticipate revenue to be up 52 percent year-over-year to $770 million with further margin expansion yielding $1.18 of non-GAAP diluted earnings per share.”

Skyworks claims they are capitalizing on the macro trend to connect virtually everyone and everything, all the time. That’s a pretty bold mission statement, but if it gets the stock to 80, I’m all aboard. By the way, it presently pays a 0.8% dividend. Since the company has no debt at all, and it generates lots of cash, and the payout ratio is extremely low, there is a good chance that the company will raise its dividend payment. During the last quarter the company repurchased one million shares of its common stock. Most companies don’t do that unless they are optimistic about future cash flows. Furthermore the fact that they have no debt gives them enormous flexibility.

SWKS stock price is..
10% above its fifty day simple moving average and....
28% above its 200 day simple moving average.
That indicates a mid-term and a long-term strong uptrend. Look at the chart and you can see that it's going up... up.. and awayyyyy. :D

EPS Growth is 26% in the last five fiscal years.

Skyworks has been able to show an earnings per share surprise in each one of the last five quarters
This is a trend that will keep moving as stated above. It only makes sense. Technology only gets better.
Plus the company is bragging about their earnings. People don't do this unless they are going to earn it. Just puttin that out there. The CEO's of SWKS are all about it - and they have the track record to keep talkin too.

SWKS started a rally in 2013 ( in terms of stock movement ) - it's continued and has excelled in 2014.
SWKS has gained 154% this year alone. But the S&P 500 index hasn’t done squat.
SWKS has a good customer base and is improving their handset customer base.
Earnings are a given. sales are moving. Contracts are already done from what I could see.
Revenue Growth is robust. Zero Debt Levels. Solid stock price. And stock performance. This chart says it all.
Skyworks is getting into non-mobile markets to increase growth and opening up new revenue streams.

These guys are awesome. SWKS has for at least the next 18 months to not be valued for any less than 30x forward EPS.
The Analysts who came up with the 2015 calculations are completely retarded. They estimate $2.99 billion in revenue and $4.47 per share of earnings. I
Let's do the math how it should be done. If you take the earnings and multiply them with the PE ratio:
$4.49 x 29 = $130.21
That looks a little better, doesn't it? I thought so.. :)

So as long as that Iphone 6 is a hot seller. the PE multiplier will rock strong. And as such - I am totally buckled in to ride this chart up an easy 15%. From there - I sell out and move on.
You gonna join me?

~Rusty