Next Inning Technology Research (http://www.nextinning.com), a subscription service focused on semiconductor and technology stocks, announced it will be publishing its State of Tech Report today, updating outlooks for Linear Technology (Nasdaq:LLTC), National Semiconductor (NYSE:NSM), Maxim Integrated Products (Pinksheets:MXIM), O2Micro International (Nasdaq:OIIM), and Texas Instruments (NYSE:TXN).
New subscribers will also receive Next Inning's Q3 State of Tech report, a $149 value, free when they sign up for a complimentary 21-day trial subscription to Next Inning. Running for the next several weeks, the State of Tech reports serve as a guide for investors that will help them pick the winners and avoid the losers during the upcoming earnings season; now is the time to dress your portfolio for success! The State of Tech report is nearly 100 pages chock-full of charts, tables, and actionable investment commentary:
During the first half of the year, both Linear Technology and National Semiconductor announced leveraged stock repurchase programs that would leave the companies in debt (with negative net tangible asset values). While certain aspects of these programs are fairly straightforward, there are others that are commonly overlooked by even highly sophisticated investors. In his July 2007 State of Tech report Editor Paul McWilliams included a special section dedicated to stepping through the calculations and carefully illustrating these often overlooked and misunderstood subtleties in ways that even novice investors can appreciate.
The bottom line to that report was simply that the stocks of companies that undergo aggressive repurchase programs that radically reduce the company's net tangible asset value become more volatile and carry both higher risks and higher potential rewards. However, there is significantly more to this story that investors should understand before judging whether these companies are well suited as for their personal portfolios. Due to this, McWilliams strongly encourage Next Inning members to take the time to read his complete report on this topic titled, "The Mechanics of Stock Buybacks."
McWilliams also looks at these topics:
-- In January, McWilliams wrote in his State of Tech report that it was time to buy Maxim at its then current price of $30 and change. When he published his July report Maxim was trading $5 higher, and he wrote that it was time to sell. Since that call to sell, the price of Maxim has dropped 20%, but has recently been upgraded by Wall Street analysts. Does McWilliams agree with Wall Street or does he think Maxim is still a stock to avoid?
-- Similar to Maxim, McWilliams wrote in his January State of Tech report that it was time to buy Linear Technology at its then current price of $30 and change. By July, the price of Linear Tech was about 25% higher, and he advised investors to hedge their positions by selling in the money covered calls. Why did he think the price of Linear Tech would fall back and, now that it has, does he think it's again a good time to add shares?
-- In his January State of Tech report, McWilliams advised investors to buy National Semi at its then current price of $22 and change. By the time he published his July report, the price of National was up about 30% and, as was the case with Linear Tech, he suggested that investors hedge National, but in this case using out of the money covered calls. Why did McWilliams suggest using out of the money calls for National versus in the money calls for Linear Tech?
-- In March 2006, McWilliams suggested that readers sell O2Micro. Within months of this call to vacate the stock its price fell over 50%. McWilliams reversed his opinion on O2Micro in his September 2006 and suggested it was now time to buy when the stock was trading for $6 and change. Now that the price of O2Micro has nearly tripled, what does McWilliams think is the best course; should investors buy, sell or just let it ride?
-- After losing positioning at its largest customer, Nokia, why is it that the price of Texas Instruments' stock has done so well? What is it that sets Texas Instruments apart from other semiconductor companies, and does McWilliams think it’s important enough for investors to consider the company as a core holding?
Founded in September 2002, Next Inning's model portfolio has returned 334% since its inception versus 118% for the Nasdaq.
About Next Inning:
Next Inning is a subscription financial newsletter focused on technology stocks. Editor Paul McWilliams is a 20+-year industry veteran.
NOTE: This release was published by Indie Research Advisors, LLC, a registered investment advisor with CRD #131926. Interested parties may visit adviserinfo.sec.gov for additional information. Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Marcie Martin, +1-888-278-5515