Cirrus Logic, Inc. (NASDAQ:CRUS)
CAPS Rating:
The Company develops precision analog and mixed-signal integrated circuits for a range of consumer and industrial markets.
Taking it to the street
The Company develops precision analog and mixed-signal integrated circuits for a range of consumer and industrial markets.
BATS data provided in real-time. NYSE, NASDAQ and AMEX data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates and Analyst Ratings provided by Zacks.
SEC Filings and Insider Transactions provided by Edgar Online.
Powered and implemented by Interactive Data Managed Solutions. Terms & Conditions
RSS Headlines
Fool UK
Recs
Cirrus is riding the Apple wave, but other manufacturers will likely begin to incorporate its top quality audio chips, especially in smartphones. The tablet line of chips are both ARM and Intel compatible, which is a big bonus as intel may finally be muscling its way into ARM's corner. The smartphone and tablet markers are growing, though more premium alternatives to the iPad are needed for Cirrus to fully benefit. Of course, if Apple falters, so will Cirrus, which is a risk that must be considered. With its low p/e, I'm hoping that Cirrus doesn't suffer from Corning-like undervaluation. What finally led me to invest in Cirrus is the energy solutions, such as smart meters. I think that our grids are moving in this direction and when I added this to the other advantages of Cirrus, I felt this was a compelling opportunity. The pullback on Friday may continue to provide a great entry point.
Would you think it's too late now to get in?
Thanks for the reply. That's a tough question to answer. Cirrus does still have a reasonable P/E, but it's getting higher (~10 is in many cases my personal cutoff) and the 50% run-up in the share price is concerning for a new position. But the business remains really promising, assuming Apple doesn't ditch Cirrus before it can diversify. It's a question of valuation and every one has a different set of metrics and cutoffs that they use to make that call. While I might say that the market has to head back down and provide a good entry point, that could or could not happen. That the market will dramatically reverse has been said during many bulls and been wrong, and has been right in bear markets. As I've already initiated a position, if I look to invest more, I'll wait for a better price personally. There still are great values in cold sectors like shipping and natural gas, though they of course possess risks. There is no sure bet company, and I try to remind myself of that every time I see "no-alternative," "must-add," "no-choice," etc. All that to say, ultimately every investor has to make that call and it is exceedingly rare that the next new thing is a have-to-have.