Skyworks Solutions, Inc. (SWKS)

Just take a step back and take a look at what is going on....fabless companies $NVDA $AMD and now $QCOM all reporting incredible ER's with tremendous growth WITH very positive guidance going forward. Semi manufactures like $TSM $TXN all reporting beats with significant growth and constantly guiding upwards with positive outlooks going forward. Other manufacturers like $QRVO and $SWKS will likely reports similar strong ER's this week. Semi equipment companies like $ASML (destroyed earnings) $LRCX $AMAT are and will likely continue reporting even more significant earnings and growth due to unprecedented demand. The semiconductor industry is looking outstanding right now and has an even brighter future. ER's are reflecting this nicely. I'm severely bullish on this industry right now and many of the stocks, particularly semi equipment stocks are looking like value plays ($AMAT and $LRCX especially undervalued).

The 5G top 3 raised by Citi analyst Atif Malik today;

Marvell raised to $64 from $50
Qorvo raised to $188 from at $144
Skyworks raised to $164 from at $137

$MRVL $QRVO $SWKS

IMO, what we have here is a typical, prepare for the weekend selling and mm, and electronic trading which as the CEO of the NYC said yesterday....that switching to electronic trading n etc will take away the ‘human’ elements of trading n may cause some short to mid term Volatility...
Funny... b/c the $VIX -Index measure of S&P Volatility actually has decreased quite a bit from it high of 80$s to around mid to high 60$s...

Also, remember, the Historical crashes going back to the Great Depression , and going fwd to 1987... and the Dot Com. Crash... “911” ... and the Crash of 2008 couples with the Housing / Mortgage Swaps and Both Oil n Gold Crashing and etc ... are historical events from which a great deal has been learned from.
FROM EVERY CRASH / Recession ... LEADS TO A REBOUND EVERY TIME...

A RESPONSE ...
Yes, $AMD, $TER , $SWKS... Have had their Share prices driven Down Immensely...
BUT... each of the above have not issued any warnings, AS OF YET, and have excellent FWD GUIDANCE.

IMO,
the Tech, Semi, , IoT, SaaS, Sectors, will be least impacted .

It’s not like we are talking about AUTO , RETAIL sectors, that are closing production, have a huge supply and virtually such small sales due to this epidemic.

Consumers will buy The new Xbox n PlayStation Consoles and Lap Tops and server upgrades will be necessary and such infrastructures for these platforms (Software as a Service) will need updating and expansion as we realize that the efficacy of Tech actually is multifaceted - from applications n etc from ALL SECTORS, from the medical sector and etc.

What Is Levered Free Cash Flow (LFCF)? Levered free cash flow (LFCF) is the amount of money a company has left remaining after paying all of its financial obligations. LFCF is the amount of cash a company has after paying debts. Levered free cash flow is important because it is the amount of cash that a company can use to pay dividends and make investments in the business.

Take a look at BROADCOM’s TTM Levered Free Cash Flow (LFCF) in comparison to peers:

$AVGO = $11.88 Billion —> Note: BROADCOM $AVGO has more than twice the Levered Free Cash Flow than the closest competitor! (BULLISH)

$QCOM = $5.04 Billion (ttm)

$NXPI = $2.43 Billion (ttm)

$MRVL = $1.41 Billion (ttm)

$SWKS = $588.2 Million (ttm)

STRONG BUY on $AVGO —> $11.88 Billion (ttm) in Levered Free Cash Flow —> FUNDAMENTAL STRENGTH —> SOLID AS A ROCK !!!

Will be red tomorrow for tech sector particularly electronic supplier and semi sector, ripple affect of Apple cutting Q revenue estimate by 8% from just announced last month due to lagging sales in China & Asia. Apple suppliers like $SWKS, $LITE, $MU, $CY will feel the pain. Tiny Donnie was proud and took credit for China economic and global downturn, but the ripple and time eventually arrive and now it will hit home. If the China trade deal is off – recession, if the trade deal is reached it would probably take 2 Qs to recover.

Hopefully good news by Dr Su at the CES will keep AMD afloat & rising.
GLTA.

I was pretty much right. Apple will likely be flat. 2% to 3% gain isn’t bad though considering the huge run Apple has already had in the past 12 months. Time to consolidate now. Good thing I also own shares of $SWKS. Their potential gains are higher right now than Apples I think.

Warm wishes,

Briscoe R.