Cypress Semiconductor Corp (CY)

Telechart Pick

Price too low for recovery. Easy 10-15% upside potential.

This is part of the mobile internet index that Cramer is touting I looked and figured what the hay its worth a shot to see if they grow they way he thinks they will. His thesis is that the mobile internet while be as big a game changer as the original internet was. Being a CTO I do not think it will be that big a movement but it will provide enough growth for his index to work just not be the huge bust out he thinks it will be. What your looking at is replacing every cell phone and laptop with a device that can connect to the internet at broadband speeds form just about anywhere in the US. The only problem I with his choice is that he left out HP and DELL and Lenovo the big laptop makers they will have a play and I am including them in my version of the index.

toppy action .... a breakdown will probably occur whe it goes below 8.20 ... support 20 to 30 % below current price

Touchscreen play and the revolutionary product in the microcontroller market with their PSoC controller. Great opportunity to get in on a growth stock at a pretty low valuation. I also think electronics are going to be the segment that gets the consumer to start spending a little money. Apple's results yesterday show that people will still buy high quality electronic goods.

I believe that Cypress Semiconductor is a very good longer term investment (2-3 year).

It is currently trading at about one third of its 52 week high and I expect it to at least return to that level.

At the end of 2Q it had assets of better than 3 times total liabilities. Its cash and near cash were greater than its total liabilities, and it has virtually no debt.

It has positive Operating Cash Flow and FLCW.

They have cleaned up their balance sheet by writing off 500M in GoodWill in 2008, which accounted for most of their losses for the year.

Their sales for 2008 were only about half of what they were in 2007 and 2006, but with their R&D and G&A staying about the same. This indicates that their primary problem is lack of sales, and not poor management or debt. With a recovery in the economy and sales coming back to historical levels, they are poised for strong growth from their current position.

They did show relatively small losses for the first two quarters of 2009, but this is again on a continued low sales level.

They have some new products coming on line, which along with economic growth should make them a very good candidate to be at least a "3 bagger" from their current level.

Never mind that Jim Cramer also likes them. Don't let that stand in the way of your making money.

As always, this is JMO and worth exactly what I am charging for it.

Current 9.22, Sept 29 09. Limit 9.22

Paying off BOATLOADS of debt. I'm in love. I wish i could do that, but instead i'll just buy into someone who is, like CYPRESS

Its on a run

The need for technology will increase in the future. CY will trend back towards there value of 1-2 years ago.

Cypress has focused in markets where it does dominate i.e. SRAM or USB and markets where it can dominate i.e. programmable consumer solutions like capacitive touch, touch screen, LED lighting control.

Couple this with a single minded focus on cost reduction and you have a money making machine.

It's PSOC. PSOC is the future!

guts

First rating of '9' on a 10 scale I've seen on there in a while.

http://moneycentral.msn.com/investor/StockRating/srsmain.asp?symbol=CY

Mobile Internet dominates

why dont you just tell me the name of the movie you would like to see

Produces semiconductors and touch screens for mobile smart phones, the main leg of the next Tech revolution.

because its there

Obama is pushing for green technology. This sector should continue to grow as we continue to rely on new resources for energy.