Cypress Semiconductor Corp (NASDAQ:CY)

CAPS Rating: 4 out of 5

The Company designs, develops, manufactures and markets high-performance, mixed-signal, programmable solutions that provide customers with rapid time-to-market and system value.

Recs

5
Player Avatar TMFSpiffyPop (99.40) Submitted: 9/30/2013 9:23:34 AM : Outperform Start Price: $8.70 CY Score: -1.80

It's a tough business, turns out. I like high technology companies that can evolve; they are some of the most powerfully good corporations and stocks you can own. Four years ago, I thought Cypress was one such, especially with the rise of touchscreens and "chips in everything." As it has turned out, it's looking more like T.J. Rodgers's corporate culture may not be creative, warm, happy enough to bring in people who love to innovate and take risks. Not sure, and the final score isn't in yet. But the company's inability to get out front of the tech revolution and stay uncommoditized seems to be the tune that is playing, and hence a stock near its 52-week low in a market that is near all-time highs. That said, the dividend and the $1+ billion market cap show some reasons for thinking CY ain't a bad buy right now. So in the face of these dark days for CY shareholders: Outperform.

Report this Post 2 Replies
Member Avatar vanliew (78.05) Submitted: 10/2/2013 12:33:33 PM
Recs: 1

TMFSpiffyPop,
I know your CAPS call is not a formal recommendation. I have been thinking through a small re-allocation of capital and Cypress has been a blip on my radar. This is because I am one of those who bought in at a far away distant past peak. I am down more than 57%. Ouch! My current investment is small, however relative to a small portfolio it still matters. Original allocaton nearly 5% and current value around 2%. I have been finding that investing in great companies tracked, rated, discussed, etc... (even including your CAPS call write up) by the Fool that have had large 'emotional' (maybe even irrational) sell-offs, resulting in losses greater than 10% of share price, can bring great returns after patient multiyear holding. Your brother recently included a statement of this idea and principle in a write up associated with promotion of Motley Fool One. So far I have not been cut by many falling knives and am still willing to wait for the big turnarounds yet to be realized, like Westport.
Anyway, invest in new formal recommendations, like Sierra Wireless (nice call and FoolPop there by the way!), or try and 'get my money back' on Cypress? I am trying to discuss and reason it through not have you make the final decision for me. Expecting a steady 3 year trek back to the top of the lofty mountain peak and collecting a 4.79% dividend along the way to sustain me on my journey would be a reasonable choice. Selling the loss in Cypress and reallocating all the capital into fresh idea(s), hmmm?
Between my wife and I, our children, and my mom we are invested in, and I 'watch over', investments in 40+- businesses. Combined returns, of all and in all, over the past 2 years are greater than 20%. THANK YOU TMFSP & MOTLEY FOOL! Fooling On & Around, KLVanLiew

Member Avatar starcorral (< 20) Submitted: 11/6/2013 12:26:08 PM
Recs: 0

With several hundred shares at 11.40 dropping to 9.30, the dividend + a bumpy plateau (albeit 18% down) CY is only livable in my portfolio until something better comes along; most downside risk at this time seems to be covered by the dividend. Cypress - within its segment - seems to be suspended in a waiting game. I rate this one borderline (D+ to C-) for typical investors. At 37% of my small S&S industry holdings, it is standing in a short line at the guillotine.

Featured Broker Partners


Advertisement