Good Wednesday to all. You will have to pardon me taking a half day today because today is my birthday, and my friends took me out for breakfast. We’ll play a fun game in the comment box of guessing my age. The first right person gets a personal stock recommendation…ooooh. Anyways, we had a bit of hurter this morning with Silicon Labs (SLAB). I did my research and found a winner. The stock doubled profits and exceeded revenue by lightyears. The only problem was the company guided a bit below estimates. I personally find that a 4% drop on this is actually quite unfair; therefore, I am going to continue to hold SLAB for a bit of time and recover some of my losses. We got into SLAB yesterday at 42.80. The stock opened and is down about 5% lower. We will continue to monitor this one, but if the fundamentals are good, which they are, then we should hold.
We are going to work on another new Overnight Trade for tomorrow. I am hoping that will at least be a decent birthday present in the market.
Also, our Long Term Position in GMCR is highly affected by the company’s earnings tonight, so we should watch for that.
Overnight Trade #1: Teradyne Inc. (TER)
Analysis: I want to get back into this one prior to earnings. It was our Play of the Week on Monday, and it sure was good to us. Yet, it has declined with the rest of the market since its Monday high and further today. The company is slated to report earnings this evening. I will pull some information from the Play of the Week article and add some new developments.
(semi sales to the left)
First off, Teradyne Inc. (TER) is a semiconductor and memory device testing device manufacturer. Their equipment tests all kinds of chips, conductors, memory devices, analog devices, etc and is well diversified across the entire technology industry. Teradyne is set to report earning this evening at an EPS of 0.47 vs. a loss one year ago when EPS was at -0.21. One of the best reasons to like semiconductors is because they continue to outperform. Even our miss from yesterday in SLAB, beat earnings by more than 10%. Since the beginning of June, nine out of eleven reporting semiconductor equipment manufacturing companies have beaten earnings. Additionally, one of Teradyne’s largest competitors Verigy Ltd. (VRGY) reported in June…
