Kevin SimpsonMonolithic Power SystemsMPWRSELLNov 15, 2024

Our PAST TOP PICK with MPWR is progressing well.  To remain disciplined, we recommend trailing up the stop (from $1200) to $1400 at this time.

Our PAST TOP PICK with MPWR is progressing well.  To remain disciplined, we recommend trailing up the stop (from $1075) to $1200 at this time.

Our PAST TOP PICK with MPWR is progressing well.  To remain disciplined, we recommend trailing up the stop (from $975) to $1075 at this time.  

Our PAST TOP PICK with MPWR is progressing well.  To remain disciplined, we recommend trailing up the stop (from $885) to $975 at this time.  

Our PAST TOP PICK with MPWR has achieved its target at $1200.  To remain disciplined, we recommend covering half the position at this time and trailing up the stop (from $750) to $885.  

We reiterate MPWR as a TOP PICK.  As an analog semiconductor chip maker specializing in integrated power management systems, these chip are the backbone in many electronic applications.  Recently reported earnings showed an 18% increase in revenues, and a five year annual average growth of 29% in EPS  and 25% increase in dividends.  The company is generating $700 million in free cash flow, while growing cash reserves, aggressively buying back shares, and generating a 64% ROE.  We recommend trailing up the stop (from $600) to $750, looking to achieve $1200 - upside potential over 20%.  Yield 0.6%

MWPR makes integrated power management systems for semiconductors.  Its revenue growth over the past five years has exceed 25% annually and last year's EPS grew by 29%.  We like that cash reserves are growing while shares are aggressively bought back, helping to support a ROE of 64%.  We recommend setting a stop-loss at $600, looking to achieve $1200 -- upside potential of 34%.  Yield 0.7%