Zeev's Turnips Patch-No Politics (ZEEV)

[marketmaven]

Closed SYNA 20 Mar $35s for $6.60 -one day double
CYBX, SYNA- First Albany "Neutral"

Note- now they're "not sure" on iPod business impact
Synaptics` stock was down on concerns about Apple`s use of a non-Synaptics touch pad in its latest PowerBooks -- i.e., whether this signals the potential for SYNA to lose the iPod click-wheel business (which is much bigger). We see a few key reasons why this is unlikely (especially in the near term), and hence, we do not anticipate risk to Synaptics` recent guidance (for the remainder of FY:05) nor to our estimates.

We are lowering our rating on Cyberonics to Neutral from Buy. The company reported a better-than-expected 3Q:FY05, but gave disappointing guidance. As the company will not see benefits from its launch into depression until the 1Q:FY06 at the earliest, we recommend investors wait for pullbacks in the name before building positions.