I'm back from Fla, and I see the market has turned bifurcated just like my golf play this trip (impossible tee game, reliable short game) which, in both cases, increases frustration, raises doubts, and tries ones patience.
As for ADI, until I see evidence to the contrary, they are still the Juggernaut of the analog, mixed signal, and DSP market space...even though the market seems to be voting jugger-not. And I've yet to see a single report from within the industry that proves the market is flattening or turning down, the bears and nervous nellies with their pack mentality are winning the day.
I believe it's safe to say ADI will be reporting wildly positive operating results in three weeks, continuing to build on recent momentum. I'm also looking for increasing operating margins, continued growth in market share (against TXN and others) particularly in DSP's, a bullish update on their optical initiative in general and with NT specifically, and, once and for all, some juicy Othello news involving one or more handset players. Who knows, they may even say something concrete about their design efforts with INTC?!
With October behaving as the bears predicted, ADI is now approaching a very strong support level in the $57 range, one that's been successfully tested three times during the last year.
For anyone looking to add to or inititiate a position in ADI, this is a solid entry point, IMO.
After sitting and watching all month, I have two buys set at $58.50 and $56.50 which I hope fill today, or at least before the election. After that, all bets are off, since I believe ADI will show remarkable strength heading into earnings and perform as a leader should; i.e. better than the overall market.
It's a tough Halloween this year. Does anyone realize how hard it is to find a DSP costume?!
BV |
