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August 11, 2010 – Comments (15) | RELATED TICKERS: ISIL

Market corrects and then we hear the doom and gloom double dip argument.  Well after a market rises over 1,000 points a correction off that is to be expected.  And with those computer algorithms at work it happens in a day now instead of weeks.  I actually hate listening to Bloomberg radio.  Not because of the underlying content, but because of Catherine Cotterie (or however you spell her name).  It isn't personal to her. it is listening to the noise she has to make while reporting the numbers.  When the market is up we hear "the market is rising on expectations that the global recovery is in full swing."  And next day when the market is down we hear "the market is down on concerns about the global economic recovery."  Please, just give me the numbers, not the silly scripted suppositions.

With that rant aside, I suspect that in light of Cisco's earnings' report and conference call the market will open lower tomorrow.  I have been eying some stocks and one that I did play with before is back on it.  That company is ISIL.  I bought it at 11 and sold it at 15.  It is now under 11 and looking pretty good again.  ISIL basically makes things I don't understand.

They developed a new battery described as follows: 

The ISLA112P50 is the latest in Intersil's expanding family of high-speed, low-power ADCs. Developed for broadband communications, radar, light detection and ranging (LIDAR), and data acquisition systems, the new converter is being built using Intersil's proprietary FemtoCharge technology on a standard CMOS process. The ISLA112P50 uses a pair of time-interleaved 250MSPS ADCs to generate its 500MSPS sample rate. The new IC also features the patented Intersil Interleave Engine (I2E) technology, which performs automatic fine correction of offset, gain and sample time skew mismatches between unit ADCs to ensure high performance.

The converter's dynamic performance and specifications are optimal for targeted applications such as high-end data acquisition systems. Analog input bandwidth is 1.15GHz.

No clue what all that means, but sounds impressive as hell.

They recently bought a company called Techwell which is a designer of mixed-signal processors to the security surveillance and automotvive infotainment markets. Again something I have no clue what is but sounds impressive as hell.

What I do like is the math.  Their last earnings report was solid.  Q2 revenue of $219.9 million, with non-GAAP profits of 25 cents a share, with the Street expecting $218.5 million and 9 cents. For Q3, the company is projecting $230-238 million, and profits of 27-30 cents a share versus Strreet forecast of 231 million and 26 cents.  In addition the company has NO debt and pays a very respectable dividend of 48 cents a year.  At current price  that is mid 4% yield.

I'll be buying again on the open.

 

15 Comments – Post Your Own

#1) On August 11, 2010 at 11:13 PM, alstry (35.21) wrote:

America is running a $165 BILLION DOLLAR PER MONTH DEFICIT........isn't it about time you become honest with yourself that the only reason you have an income and net worth is because politicians are borrowing a mathematically unsustainable amount of money?

awa...you are what I call a subprime investor....you are investing with money that is simply borrowed money with no way of paying it back......

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#2) On August 11, 2010 at 11:14 PM, truthisntstupid (94.07) wrote:

I've been out of the electronics field for a long time - but I'm guessing  "ADC's"  are analog-digital converters.  They aren't batteries, though.  They simply take an analog input and convert it to a digital signal for some type of control system that requires some type of pulse code modulation. 

Somebody out there tell me if I'm right.  I've been out of the electronics field for 20 years.

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#3) On August 11, 2010 at 11:50 PM, angusthermopylae (40.09) wrote:

got it dead right, truth.

And because of the ubiquity of computer systems, microcontrollers, and real-world interaction, this would be one of those "underlying beneficiaries" of any increase in manufacturing--everyone else pays attention to the X-thousand cars rolling off the line, but every car could have 5-10 of these chips in them.

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#4) On August 11, 2010 at 11:50 PM, ctojeira (36.71) wrote:

You are correct.  ADC's are A/D converters, intended to digitize data.  They can be used in many different applications, not necessarily a control system.  Companies have ADCs that sample at up to 3 GHz.  These guys are talking about 250 and 500 MHz (1/12 and 1/6 of the speed of the high end ADCs), so it's not all that impressive.  See companies like TI, Linear Technology & National Semiconductor for more impressive ADCs.

 

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#5) On August 11, 2010 at 11:55 PM, Momentum21 (96.83) wrote:

the same light volume and volatility that drove us up is taking us down...we are all going for a ride...where it stops no one knows!

seems like a good time to buy, because I really don't want to...: )

thanks for the idea on ISIL 

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#6) On August 12, 2010 at 12:00 AM, ChrisGraley (30.30) wrote:

Alstry, you are barely tolerable when you stick to your own threads.

You are repugnant when you spam the threads of others.

I don't mind you making responses based on your beliefs, but if you post another blog advertisement I'll complain to the monkies in charge and they'll take away your bananas.

My best guess is that the market is down all day tomorrow. Ithink it will open lower on Friday with a fully funded PPT up-tick in the last hour. 

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#7) On August 12, 2010 at 12:16 AM, awallejr (82.76) wrote:

awa...you are what I call a subprime investor....you are investing with money that is simply borrowed money with no way of paying it back......

Actually you are incorrect.  I don't care if I lose the money I invest.  My income more than covers my debt/expenses.

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#8) On August 12, 2010 at 12:17 AM, TMFBabo (100.00) wrote:

Since several people already beat me to the punch on ADCs, I'll just add that mixed signal chips have both analog and digital circuitry. 

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#9) On August 12, 2010 at 12:20 AM, awallejr (82.76) wrote:

As for comments 2-4 thanks for the reply but you spoke chinese to me heheh.  And Chris, thanks for the reply, we disagree at times but it is never my intent to be mean.

 

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#10) On August 12, 2010 at 12:36 AM, dwot (97.28) wrote:

How did it end up with a P/E ratio of 559?

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#11) On August 12, 2010 at 6:51 AM, dragonLZ (99.67) wrote:

Market corrects and then we hear the doom and gloom double dip argument.  Well after a market rises over 1,000 points a correction off that is to be expected.

I didn't expect it.

A slightly negative day (-100 points on the DOW) OK, maybe I did.

But a negative 265 points day?; No, I did not.

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#12) On August 12, 2010 at 6:58 AM, awallejr (82.76) wrote:

How did it end up with a P/E ratio of 559?

Can't answer that.  Last year, according to Value Line it earned .35 a share for the year.  This year they are projecting it to earn .95 a share, but I suspect that will be revised.

And Dragon, the computers have taken over the market, making it more volatile I submit.

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#13) On August 12, 2010 at 7:18 AM, ragedmaximus (< 20) wrote:

im buying shorts, here we come dow 9000. As for cnbc and all the money shows blah blah blah they are actors and would never report what really is happening  in the market cause without average joe investors money to steal there is nobody left.The whole game is rigged from the fed, the banks, gs,so go it alone or find an investing site like i did ,2 of them in fact that tell the truth and on a dow-265 down day I was smiling at my gains.As for motley fool unless you use a pay service good luck weeding through all the info.and yes the market will rise again just not in the next few months.

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#14) On August 12, 2010 at 6:54 PM, guiron (< 20) wrote:

And Dragon, the computers have taken over the market, making it more volatile I submit.

It's easier to trade volatility when it spikes than it is to make predictions, at least for me. Right now the VIX is in a range and has a pretty good support level. It's easy to tell when it spikes that it's going to revert to mean quickly- it's going to come down, so selling options works well, particularly out of the money bull put spreads (I almost never buy options except in a spread anyway). When it hits support it's only a matter of time before it spikes again, but it's hard to predict exactly when - except when Bernanke speaks. That's almost always a sell-off, much like this time, except it started early.

The catalysts these days are all government intervention and earnings and guidance surprises, and we're just coming out of earnings season. It is driven largely by computers and hedge funds, and it's all technicals and catalysts. There are so many stocks right now trading under 10 forward P/E it's insane. We're not melting down that fast, but the charts want to go where they're told.

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#15) On August 12, 2010 at 9:29 PM, awallejr (82.76) wrote:

The catalysts these days are all government intervention and earnings and guidance surprises, and we're just coming out of earnings season. It is driven largely by computers and hedge funds, and it's all technicals and catalysts. There are so many stocks right now trading under 10 forward P/E it's insane. We're not melting down that fast, but the charts want to go where they're told.

I have to say "quoted for truth."

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