I don't like what I read: "Late in the quarter, weakness in demand also spread to the industrial market segment. Pricing for multi-market products declined sequentially by nearly 8 percentage
points, about a point more than the company expected. ", meaning, the end is not there yet (despite the fact that management claims the next quarter might be the through)
However, I like this part: "Despite what is widely seen as the worst industry downturn in semiconductor history, June-quarter shipments of IR's proprietary products (analog ICs, advanced-circuit devices, and power systems) grew by 25 percent year-to-year. These products now comprise 43 percent of total revenues." , meaning high margins products are increasing as a percentage of the total. Technically, the stock is still weak, and I expect it to "visit" the sub $30 territory. On the other hand, however, this company has what it takes to earn $2 to $3 per share in the next two years, and thus the current price is getting very close to a bargain.
Zeev |
