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goldminingXpert (29.53)

Buy Texas Instruments (TXN) ahead of earnings

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October 20, 2008 – Comments (10) | RELATED TICKERS: TXN

I'm buying 17.5 strike NOV call options for Texas Instruments. earnings expectations are in the dumps, analysts expect at best a meet on 44 cent target, and expect big guide down. Expectations are in the dumps, any sort of good news will pop the stock. With a P/E of <9, tons of cash, no debt, and a solid dividend, this company is way too cheap. Any sort of good news will launch the stock. Implied volatility is also low on TXN. the 17.5 are in the money by 30 cents calls and are going for $1.35 a pop, while the $20 strike Nov calls are going for 45 cents. Should be a triple on the 20's and double or so on the 17.5's if earnings come in well today.

10 Comments – Post Your Own

#1) On October 20, 2008 at 3:50 PM, Imperial1964 (98.25) wrote:

TXN is suffering overcapacity like the other chipmakers.  If I were to buy one, TXN would be my pick, but I'm avoiding all chipmakers right now.  I think the time to buy is a ways further down the road.

Just my opinion.  I'm certainly not a skilled tech. investor.

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#2) On October 20, 2008 at 4:26 PM, anchak (99.85) wrote:

Whether it works or not - its a good contrarian idea.

Recd!

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#3) On October 20, 2008 at 4:55 PM, Ph1sh55 (28.50) wrote:

dropped like a rock after hours on earnings report :<</p>

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#4) On October 20, 2008 at 8:49 PM, goldminingXpert (29.53) wrote:

yeah, apparently things are apocalyptically bad for the economy if TXN can't meet an estimate THAT low. So goes semis goes consumer spending goes the economy...

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#5) On October 20, 2008 at 9:28 PM, UltraContrarian (31.97) wrote:

The only semi company I really like is Silicon Motion (SIMO) with a PE of 3, trading just below net current assets.

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#6) On October 20, 2008 at 10:19 PM, CentralBankEVIL (28.94) wrote:

Despite TXN, goldminingXpert has the best looking chart month by month on CAPs!  Keep it up!

Gtrinvestor also has a an insane chart.

 Keep it up & Kudos to you.

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#7) On October 21, 2008 at 1:22 AM, MLGtrader (98.89) wrote:

Hey GMX, would now be a good time to load up on JAG shares?  I thought they were a bargain under $4, but they jumped today.  I think they will move lower with the rest of the market.  Is there still the strong bull story for JAG?

 

Thanks,

Collin

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#8) On October 21, 2008 at 4:01 PM, goldminingXpert (29.53) wrote:

I still love JAG, but the miners are getting killed. A baby miner isn't going to go anywhere until the large-caps right their ship. Regardless JAG isn't selling much over assets, so it isn't going much lower unless a secular bear has developed in gold AND oil prices rebound (with oil on the decline, profit margins are rising for gold miners as their costs fall.)

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#9) On October 21, 2008 at 11:48 PM, adventurerneil (< 20) wrote:

Hey GMX,

I like TXN's balance sheet, but the declining equity over the last few years kind of raises a red flag for me. Should it? I'm still pretty new to fundamental analysis...

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#10) On December 02, 2008 at 1:30 PM, hansthered0 (< 20) wrote:

How about buying it now?? It's even lower. $14.52 (12-2-2008)

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