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on My Watchlist
A leading designer and builder of semiconductors, Texas Instruments is a leader in digital signal processors.
Valuations looked stretched and the semi cycle has limited upside from here.
TI has become very favorable to long term investors with hefty dividends and stock repurchasing programs. On top of that, they are growing their embedded processing business and capturing more market share in that area.
The Oxford Income Letter
Unedited Excerpt from a CAPSCall article anticipated for publication on 02-JAN-2013:The next selection for the Inflation-Protected Income Growth Portfolio is semiconductor titan Texas Instruments (NYSE: TXN). Perhaps best known for its line of scientific and graphing calculators, the company has a wide array of electronic products across industries ranging from automotive to X-Rays. It’s that broad range of products, combined with a decent valuation and dividend history that makes Texas Instruments an attractive selection.The company has paid a dividend since 1962, and it has been regularly raising that payment since 2004, enabled by a shift to more profitable products.
Hoping it will outperform INTC.
Improved strategic positioning in semicon will show in long term earnings growth
mobile payment play
http://www.fool.com/investing/general/2012/01/24/the-coast-is-clear-for-blue-chip-chip-shops.aspxThe pride of Dallas got up in its soapbox with megaphone and semaphores, and the message is clear: Chips are safe for investors again.As a rule, we Fools don't do market timing. "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price," says the Oracle of Omaha. Amen to that, brother. And what we have in Texas Instruments is a wonderful chip builder at a fair price.
Will supply the parts for cell phone mfgrs
They made my Ti-89 that got me through a mathematics major without ever having to do long division. And they're a solid company
Almost the perfect stock! 9/105-yr ARG: -1.741-Yr. RG: 33.9Gross Margin: 58.9Net Margin: 22.2Total D/E: 0.32Current Ratio: 6.2RoE: 28.8PE: 9.9Div Yield: 25-yr Div Growth: 32.13Wow. In three years the 5-yr ARG will be highly positive and it *will* be perfect :)
I need to spend more time with their numbers, but my interest comes from the second life that their DLP tech is gettting in the LED projector market. It's still a niche area right now, but what 3rd party manufacturers have been able to accomplish with it is quite impressive. I think TXN will do well in this growing area. 'Though of course, it's only a small piece of what the company does as a whole.
TXN has been one of my secret picks, since I just know that this stock is going to get clobbered over the next few years. Sorry, can't say why, but trust me, it will
dividend + low PE = ARMH chips
Electricity is scarce, workers are distraut, logistics (road and sea) are a mess, JIT processes impossible and 3 nuclear reactors are having serious issues with no trustworthy source reporting the facts. It's going to take a significant amount of time to get all of this under control. The contagion from Japan's many setbacks, the tension in the middle east and the probable default by Europe (and the U.S.) on debt obligations (and the contagion) has Black Swan written all over it. Black Swan bitchezzz!
New mobile chips.
On 1-6-11 I was sniffing the semi-conductor industry through the Smelloscope.After several foul run-ins with particularly stinky stocks... I finally came across something that smelt of success. 'Twas Texas Instruments. On that day it was selling for $32.80 and scored 66 points out of 100... making it the 2nd best stock I have ever scored through the Smelloscope.Here's what made TXN stand out compared to it's stinky peers:-TXN's P/E is at a 22% discount to it's 5 year average-Their P/E is at a 50% discount to the industry-They have more than twice the amount of Total Current Assets as Total Liabilities -Their current ratio is over 3.5-They have no long term debt and a better price to sales than many of their peers-They have a low price to free cash flow compared with many of their peers-ROE%, ROA%, and net profit margin are all better than the industry average-Net profit margin is trending up over the last 5 years-Book value per share has been increasing over the last 5 years-They offer a modest dividend which has a strong history of growth-Less than 5% short interest (as a percentage of float)The bottom line:Texas Instruments is a well managed company which has fully integrated itself into our everyday lives. They operate in over 30 countries and are heavily relied upon by large equipment manufacturers, design manufacturers, contract manufacturers, and distributors. Most people know them for their calculators... but that's just a small part of what they do. They manufacture products which are in televisions, wireless devices, automobiles, smartphones, computers, and more.Being that they are so diversified and that they have become a significant international presence, I believe TXN is a great way to invest in industries which might otherwise seem too risky.My only real concern about Texas Instruments is that there has been some negative insider trading recently. But other than that, everything seems to be pointing in the right direction. Definitely good enough for a Smelloscope thumbs up!~djshagggydFull discloser:I don't own any TXN in real lifeTheSmelloscope is a value rating system created to evaluate stocks for fun. It is operated by a novice investor named djshagggyd. NOVICE being the key word. Do not take Smelloscope advice without conducting your own research.
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