Zeev's Turnips Patch-No Politics (ZEEV)

[w0zz]

Babylon - "I do like this company, from your POV what area looks like a good entry point on this one?"

(Sorry they won't let me PM because I'm too cheap to subscribe <g> and yes, my car is a 1993 vintage...but it's a BMW M5 so even I have weak moments occasionally!)

SWKS entry...that's a hard one! This morning it hit $7.38 and then institutions stepped in. With its low valuation, and recent slew of upgrades, I frankly doubt it will drop much below $7 but it could happen in a moment of panic or if Zeev's 1222.22 happens. I sold about 1/3 of my holdings when it shot above 8.5 a few days ago...then repurchased at 6.70-7.30 when everyone paniced after they announced their convertible financing, so I think anywhere close to $7.00 would be a great deal. The problem is that the word is now out on this stock and institutions must surely be doing the comparison to RFMD in which they are heavily invested.

Reasons I like SWKS (off the top of my head):

1. Low valuation (1.7X sales versus 2.7X for RFMD).

2. Samsung is SWKS' #1 customer...Nokia is RFMD's #1 but Samsung is eating Nokia's lunch bigtime.

3. SWKS won a number of new SOC designs going into Samsung's high runners...these are much higher value ($15-20 apiece) than the simple components which ANAD and TQNT make...and SOC is definitely the future trend in this market.

4. A great way to play wireless independent of the technology wars (CDMA vs GSM) since SWKS sells into both markets.

5. Entering WLAN and in their CC announced they now have a "significant" share (5M units sold).

6. The market gorilla in wireless RFIC's.

7. Wireless is booming and I don't believe it will be significantly affected by the economy no matter what happens. How many folks will drop their cellular service even in a recession/depression? 3G will also cause a lot of the installed base to upgrade their phones.

8. Excellent management (old AHAA team).

Bottom line, you will probably not get hurt too much at current prices but try for $7.00 or less if you can get it!

Good luck...I enjoy lurking here occasionally and am in awe of you guys who make money day-trading.

P.S. Most of the recent slew of upgrades have a price target of $10-12 but I'm thinking more in terms of a $1B company with 15% operating margins...you can do the math!