Sunday, February 2, 2014

The naive believe everything . . . but a wise man looks well into a matter ...part 3

The market has just been unstable and unpredictable. This led to some of my stocks being stopped out and sold at a loss, however this was offset by others taking a nice turn.
I have not been able to allow much time on stocks recently, perhaps that is for the best. I have enjoyed the bits and pieces of time pasted together in doing a review of the Cramer picks, hopefully this will be beneficial

For reference:

Cramer’s list of stock to own: GOOG,  GE, JCI, BAC, CIEN,  XLNX, AAPL, CAT, BA, JNJ, TJX

Cramer’s list of companies that he considered to be well managed: MMM, WFM, HON

Back to the review:

Xilinx Inc. (XLNX) is a San Jose company founded in 1984. They design programmable chips, they are profitable and they pay a dividend. 

They seem to be a leader in the 28nm and have a close relationship with a manufacturing partners in Taiwan and other locations. They are a "fabless" semiconductor company, which means they do not own or operate any of the wafer-making facilities. Wafers are needed to make the integrated circuits they produce and sell.
This production minimization allows focus on research, development, marketing, and technical support for its products.

They are clearly a leader owning just over half of the entire programmable logic market, but the competition in this market is fierce. Does this make them vulnerable or does it make them strong?
Xilinx customers are the like of Cisco, Sony, IBM and Siemans. I don’t see Apple as a customer. Their customers program these devices using their own software.
I like what I have learned about Xilinx and I like leaders that do well. I view not doing the manufacturing of the wafers as a plus as it allows them to have others focus on this which likely reduces cost. I also like they provide a good tool to their customers that in turn put their own mark on these devices. I like that they are constantly advancing their art, likely the key to long term success.
What did I see in my weekend review?

The 10-yr Treasury yield is 2.67 %
IBD (Investor Business Daily) continues: Uptrend Under Pressure
Copernicus Systems: Short IMHO
Moneys Flows:  all positive, but all portfolio process have dropped this week

HAIN +10.83% …did not sell
WWAV -.80%

QQQ …ended up selling, nice gain but would like to reload
EWG sold, modest loss
IBB sold at nice gain
IWM -2.84% …did not sell

Cramer Picks:

JCI stopped out

BAC +.12%, nice turn

CAT +2.68%, nice turn

CIEN +3.93%, nice turn

GOOG +1.81%, nice turn

XLNX -2.86%

TJX stopped out

MMM stopped out

HON +1.27%, nice turn

JNJ -5.49%

BA stopped out

What will I do?

No plans

I hope you have a great week….it could be interesting.

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