I follow quite a lot of companies, so the usefulness of a watchlist to me cannot be overstated. Without my watchlist, I’d be unable to keep up on my favorite sectors and see what’s really moving the market. Even worse, I’d be lost when the time came to choose which stock I’m buying or shorting next.
Today is Watchlist Wednesday, so I’m discussing three companies that have crossed my radar in the past week — and at what point I may consider taking action on these calls with my own money. Keep in mind that these aren’t concrete buy or sell recommendations, nor do I guarantee I’ll take action on the companies being discussed. What I can promise is that you can follow my real-life transactions through my profile and that I, like everyone else here at The Motley Fool, will continue to hold the integrity of our disclosure policy in the highest regard.
Skyworks Solutions Inc (NASDAQ:SWKS)
I freely admit to pounding the table on Skyworks Solutions Inc (NASDAQ:SWKS) every couple of months. But, given its dominance in power-amplifying modules and RF components in mobile devices, I don’t see how this company isn’t a staple on everyone’s watchlist.
Last month the RF supplier market (of which Skyworks Solutions Inc (NASDAQ:SWKS) is also a member) received quite the scare when QUALCOMM, Inc. (NASDAQ:QCOM) unveiled its next-generation all-in-one RF360, which is capable of dealing with band fragmentation on the front-end and would make the current RF components mostly dead weight. This is terrible news for weaker-positioned RF suppliers like RF Micro Devices, Inc. (NASDAQ:RFMD), which have been scrambling to produce 4G LTE-capable components. RF Micro, for instance, has been reducing its reliance on Nokia Corporation (ADR) (NYSE:NOK), but still counts quite a bit of revenue from 2G and 3G RF sales to the company.
Skyworks Solutions Inc (NASDAQ:SWKS), on the other hand, has a tight-knit relationship with Apple Inc. (NASDAQ:AAPL) and that isn’t likely to change anytime soon. Skyworks Solutions Inc (NASDAQ:SWKS)’ most recent quarter — which saw it report revenue of $454 million, up 15% from the year-ago period, and EPS of $0.55 — handily surpassed analysts’ expectations. As icing on the cake, Skyworks ended the quarter with nearly $2 in cash and no debt. With ample R&D funds on hand and a bare-bones forward P/E of just 8, I feel Skyworks Solutions Inc (NASDAQ:SWKS) could be primed for a big move this year.
Endeavour Silver Corp. (CAN) (NYSE:EXK)
Since making Endeavour a stock near a 52-week low worth buying in late January, it’s done nothing but make me look foolish and head lower. Endeavour’s problems are pretty simple to understand, with lower production at its newly purchased El Cubo mine and lower spot silver prices holding back its bottom-line profits. However, my opinion is that’s about to change in a big way.