He would stratify the semiconductor market into 2 categories, digital and analog. In many cases, this company is the old analog style company, and in many cases, have a lot of chips that are very, very primitive in the economy, using them in lighting, baseboard heating, radios, TV, etc. Digital chips are used to power the Internet, and are obviously much more expensive chips. There has been increased penetration of semiconductor content in emerging markets, and it is going to be a continuing play moving forward. Any exposure to that category is good. Unfortunately, all technology stocks have run very hard in the last few years. He would like to see a bit of a roll over in the semiconductor market, which is when he would be looking to adding more money.

(Market Call Minute.) The whole semiconductor sector in the US is doing well. This is one of the leading companies in that, so he suspects they will continue to do well.

(A Top Pick Sept 13/16. Up 25.29%.) For the last 2.5 years, probably the most powerful secular theme in the market has been in technology, specifically 3 big themes of 1) cloud-based computing, 2) software as a service and 3) Internet of things. In the Internet of things, we talk about all the devices that are being attached to the Internet, and this company sells analog chips that go into all these connected devices. This is one you can continue to Buy.

A very good company, and active in both the analog and digital side. It is struggling a little bit on margins on the analog side, and doing well on the digital side. What gives him pause is the multiple. It has done wonderfully, but is trading at about 22 or 23 times earnings, which is way out of his league. He doesn’t want to pay that on what is going to be a cyclical story.

A great sector to be focused in, and technology is his greatest weighting. Within technology, semiconductors is about the most powerful theme. He really likes this because it is at the heart of the Internet of things. Almost every major device is going to wind up connected to the Internet, i.e., presses in a factory, home appliances, etc. This company designs analog semiconductors, specifically for a task for a purpose. They get designed into a product, and then they stay there as long as the product is manufactured. The use of semiconductors will continue to grow, whether or not the economy is growing. Pays a 2.2% dividend.

(Market Call Minute.) The chip companies have run up a little. What worries him is that revenue growth really isn’t rising. They are making more money, but it is through higher margin products, which only goes on for so long.

(Top Pick Oct 2/13, Up 21.99%) Bought on a massive breakout and then now he sees it as a 3-5 year trade.  The trend is up. 

(A top pick Oct 1/13. Up 1.03%. Up 4.71%.) A 10 year chart would show that this had a very big lid on it of about $40. It broke through that and he can see it doubling in the next 3-5 years. Expect there will be a pull back in the next week or so and you can Buy it safely on a pull back.