Texas Instruments, Inc. (TXN)

My thinking here is pretty simple: a diverse portfolio is good, and Texas Instruments won high marks on Calvert's corporate responsibility rating list for the largest 100 U.S. companies (in the areas of environment, workplace, business practices, human rights, and community relations). This stock strikes me as solid, not exciting, but as a long-term investment, that's what I'm looking for.

Texas Instruments is a well-diversified semi conductor company; with end market exposure spread across the wireless, broadband, consumer electronics, PC peripheral and industrial sectors. TI has over 35,000 employees worldwide, and serves more than 30,000 direct and indirect customers.

Top-tier handset manufacturers such as Nokia and Motorola make wireless handset market a critical growth factor for 2007. Nokia with its GSM and WCDMA handsets remains a key customer accounting for 10% of Texas’s total sales. Nokia also proves to be a strategic asset for the company as Motorola has started sourcing from, its competitor Qualcomm. The company sees huge potential for its LoCosto and eCosto platforms to penetrate the high-volume market of low-end handsets with estimates of selling 1 billion units in 2007.

Texas Instruments sees huge potential in its Digital Signal Processing (DSP) markets worldwide. Semiconductor content in the automotive industry is expected to double by 2015 with hopes of garnering market share with its DSPs, analog, and microcontroller products for a variety of automotive applications such as telemetrics, safety systems and powertrain.

Texas Instruments has a solid Intellectual property and patent portfolio across the wireless industry for which it has poured in $1,639 million in research and development over the past three quarters. A lot of onus rest on Texas Instruments, to monetize its patent portfolio apart from fighting against the alleged unfair business practices by Qualcomm in the European Union. The company’s responsive manufacturing model of fully utilizing its inbuilt internal capacity and outsourcing about 20% helps in reducing capital expenditures and price fluctuations to meet customer demands. On the operations front the distributors inventory levels remain lean and is tightening the screw on expenses. The rosy fundamentals confirm its tag of being under-valued among its peers in the semi conductor industry makes is a worthy pick.

Check out this post from John C. Dvorak: http://feeds.ziffdavis.com/~r/ziffdavis/pcmag/dvorak/~3/50126695/0,1759,2052904,00.asp

TI looks pretty cheap with a P/E of 11. A quick DCF analysis suggests a fair price of $45 or so.

TXN is probably the greatest semi stock to own. Its big enough where you the investor wont get burned by a negitive quarter during bad times in the semi sector aka too much supply. And yet its still has forward sales growth of approx. 10% the stock also trades at the lower end of the p/e range for stocks in its industry, along with a very proven track record of reporting earnings unlike that of intel which cant seem to get rid of AMD. Plus TXN makes great products that are used in the newest of technologies like wireless handsets and DLP hd t.v.'s. And with the latest concerns over ample supply in the industry these stocks have underperformed the market, but with gas prices going down and people with more money in their pockets for the christmas season i am thinking that people are going to buy their neat new electronic devices that have Texas Instrument chips in them. So I would say that by the middle of January TXN trades at 39.

Texas Instruments Incorporated (TI) operates in two business segments: Semiconductor, which designs, manufactures and sells integrated circuits, and Education Technology, which supplies graphing handheld calculators. During the year ended December 31, 2007, the Semiconductor segment accounted for 96% of the CompanyGÇÖs revenues and Education Technology accounted for 4% of its revenues. The Company has manufacturing, design or sales operations in more than 25 countries. In July 2007, the Company completed the sale of its broadband digital subscriber line (DSL) customer-premises equipment semiconductor product line to Infineon Technologies AG. In October 2007, the Company acquired POWERPRECISE Solutions, Inc., a fabless portable power management integrated circuit solutions company based in Herndon, Virginia.

52 Week High 39.63
52 Week Low 27.51
Volume 9.95 Mil
Average Daily Volume (13wk) 6.18 Mil
50 Day Moving Average 29.85
200 Day Moving Average 33.31
Volatility (beta) 1.86

Wow, its taken me years to get TXN at a good price and a good time. This is IT! TXN is in the midst of a turnaround and their is still great upside to their DLP HDTV technology as adoption will accelerate in HDTV, and their solution is best and most cost effective. They also have inroads into the theater industry. Great baseline in mobile chip market.

Low price earnings ratio v. other technology stocks. Has a big footprint in chip manufacturing for common electronic devices. Downside: doesn't seem to be a glamour electronics stock at the moment, doesn't appear to follow the efficient market theory, all other things being equal.

Texas Instruments is poised to grow very well in the next 5 to 10 years due to exploding use of its DSp chips and other semiconductors in all kinds of portable devices, from cell phones to MP3 players etc

engages in the design, manufacture, marketing, and sale of high-technology components in the United States, Asia, Europe, Japan, and rest of the world. The company operates in two segments, Semiconductor and Education Technology.

great company with good management. CEO Richard Templeton is a young CEO that knows what he is doing and seems to me like he is going to stay at txn for quite some time.

currently working to pay off debt, only problem with it is its costing them too much and they are losing book value at the moment but as they continue to increase their income they should be ok.

As the global demand for electronics rises, so should Texas Instruments. Its strong management team and proven record of market beating returns add to this argument.

My optimistic outlook coming with the approach of the end of the elections puts this as a prime choice considering its current position. The fact that TXN holds its strengths in superconductors and has its connections with DLPs coming in to the seasons of movies I believe it will strengthen dramatically over the next two years and beyond.

TXN is a winner and a ripe one at that. Check out how well other companies in this sector are performing that have already reported. TXN will be MUCH better than expected. I am buying more before the lid pops.

TXN remains to be my favorite pick below $29. Cell phone orders should still remain healthy. iPhone is evidence of a hot new idea giving the industry a much needed catalyst.

Other businesses: DLP chips, education. HDTV play in conjunction with GLW. I just wished their education business could be given more emphasis.

Chip mkt and cell mkt look ok, funds seem to be buying.

TXN has a dominant position in digital projection (DLP is their technology), analog processors, and serious calculators. Plus an appealing low P/E. HP would be in a better position now if it had imitated Texas Instruments instead of Dell and Compaq.

Texas Instruments is a company that continues to develop solid new technology's. The size of it has bogged it's stock price similar to Microsoft's. The stock has traded between a 28 - 34 price range over the last years. You could almost call it cyclical. Look to buy in the high 20's and sell between 33-35, you could make money over a 3-6 month range.

26 DEC 2008

T.I. is ranked near the top of the list of stocks I just analyzed that have lots of cash, little debt, and strong cash flow. This is a great technology value investment here in the mid-$30's.

See my blog at http://stockadventures.wordpress.com/2007/12/24/santas-portfolio-stocking-stuffers-stocks-with-cash/ for my full comparative analysis of 77 stocks.

Cheers,

AssetMangler

world economy and smart phones will push this company forward.

TXN is one of the best positioned companies to take advantage of next generation portable technologies. The P/E is extremely low (~12), but the YoY growth rate in revenue is almost 25% and ROE is almost 22%. TXN tends to get dragged down by the semiconductor sector, but has had nothing but positive news in its quarterly reports lately.