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Sunday, January 31, 2010

Top February stock to buy - Cypress Semiconductor ( CY )

 

Cypress Semiconductor Corporation 10.05 a share / Target price 13.76


(Public, NASDAQ:CY)
Cypress Semiconductor Corporation (Cypress)is a broad-line semiconductor company. The Company delivers mixed-signal, programmable solutions. Cypress also offers wired and wireless connectivity solutions. Cypress serves markets, including consumer, computation, data communications, automotive and industrial and white goods. Cypress’s reportable segment includes Consumer and Computation Division, Data Communications Division, Memory and Imaging DivisionOther On September 29, 2008, Cypress spun-off its majority owned subsidiary, SunPower Corporation (SunPower). In July 2008, Cypress completed the sale of certain product lines of its subsidiary, Silicon Light Machines (SLM), to Dainippon Screen Manufacturing Co. Ltd. In September 2008, Cypress acquired Simtek Corporation (Simtek) through the merger of its wholly owned subsidiary Copper Acquisition Corporation with and into Simtek Corporation. Cypress Semiconductor Corp. (CY) swung to a fourth-quarter profit as the maker of integrated circuits posted steep write-downs in the prior year, as well as higher revenue and margins in the latest quarter..
Cypress had posted a string of losses due to slumping demand for computers and other electronic devices in which its technology is used. But a recovery in information technology spending, as well as upcoming consumer product cycles, particularly for smartphones, should benefit Cypress, according to Wedbush Securities. The firm on Monday said it sees strong earnings and revenue growth into 2011 for Cypress.
"While we can't predict where the economy will go in 2010, we are seeing positive signs from our customer base, increased bookings and backlog, strong design wins, low levels of inventory, and a very rational supply chain," said Chairman and Chief Executive T.J. Rogers.
On Thursday, Cypress posted a profit of $2.9 million, or 2 cents a share, compared with a prior-year loss of $415 million, or $2.88 a share. Excluding items, such as stock-based compensation and acquisition-related expenses, earnings were 21 cents, compared with a loss of 8 cents a year earlier.
Revenue increased to $194 million from $165 million.
In October, the company projected earnings of 10 cents to 11 cents on revenue of $180 million to $185 million, above analysts' estimates at the time.
Gross margin widened to 48.9% from 47.3%. 
As consumers are gradually upgrading their cellphone plans to newer and better smart phones which are dominated by touch screens then companies that make those touch screens are going to need supplies like CY.No debt. $250m in cash. Good cash flow. Expanding markets for products--memory, wireless, sensors, power and lighting controls, etc. A well run company poised for growth.Everything is touchscreen now. Hopefully these guys can increase market share outside of the smart phone can you say IPad from Apple.Tech is the place to be in 2010. Corporate spending will increase in 2010 and tech will be the beneficiary.this Stock Has Potential because of its changing Technology. This Company has now entered into the market of Microprocessors. Even better than that, it has a good market share in all of its core products - USB controllers, general-purpose programmable clocks and memories.I believe that Cypress Semiconductor is a very good longer term investment (2-3 year)
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