Robert,
Looking at the number of your posts, you certainly believe in a reversal of the market. The Nasdaq is now sitting at circa 4,200 points , i.e. +10% since we started this discussion (btw, I maintain my prediction of 4,400). So given your 20% correction scenario, the Nasdaq should end up at around 3,400 points after the correction (starting from the current 4,200 base).
Frankly, I am not too concerned with the market performance at this stage (see my posts stating CSCO and CEBIT as positive market drivers), I am more concerned with my RFMD analysis. FYI, I sold at 90 (as stated),and came back today at 82.
Until now my take on RFMD was strong sales (leading to profit)performance vis a vis its peers in a booming sector, i.e. a growth engine sales driven model.
Looking at the latest earnings, RFMD grew 76% in sales (not enough to my liking, I expected a triple digit growth), but improved its profit line more substantially (RFMD truly creamed the market a la INTC)one need to re-assess. Improved margins alone could certainly trigger some reviews from the analysts, i.e. higher margin - slower growth business model (reminds me of CTXS). IMHO that should benefit RFMD and result in some upside potential for the stock.
In conclusion, I believe the analysts will decide what to make of the stock at this point. If they buy into the margin story, RFMD will cross the $90 bar easily.
What do you think? |
