Qorvo Inc

QRVO-Q

Semiconductor player in network and wireless space. Supplies Cisco (CSCO-Q) and Motorola (MOT-N). Latter has struggled over the last year or so but supposed to change in the 2nd half because of new management. Although this has done well he would use caution going forward and perhaps take a little bit, not all, off the table.

Trading below cash now. Missed estimates and guidance 3 times last year and changed direction in their business model last quarter. Got pummelled. Out of favour and trading at a very low level. Good revenue and decent cash flow and just cut investment in a money losing area so margins are going to pick up.

Sells products into the cell phone market. Have had some pretty big customer concentration. When they hit it can go very well, but when you are a smaller player that business can disappear very quickly.

A smaller supplier primarily going to the cell phone market. Pretty volatile. Have a few very large customers. Contracts can be won or lost. Probably fair value.

Semi-conductor group has underperformed. Has been a lot of damage to a lot of stocks. The basic issue is that there is not a lot of pricing power. Demand for semi-conductors are expected to be lower this year. Only 30% of companies are trending higher meaning there are not a lot of buyers and that the sell off is getting to lower levels. Would prefer a company thet is trading against the highs in a very weak sector.

Very cautious on the wireless industry right now. Highly volatile. Treat as a trading stock and buy when it is very weak but sell when it goes up.

A good sector and is the leader. Would buy at $10/12.

Has acted very well, but some of this is shorts covering their sells. Wait to see how the charts develop.