Those looking
into some catalyst might want to ponder over these names for the week. I have
done research on few of them, the other I have read online on Barron’s and
other publications. These are def. is
worth a serious look.
Skyworks Solutions (SWKS): The company was known as Alpha Industries years ago, and
made microwave products for the defense industry. SWKS now makes
radio-frequency chips in concert with Qualcomm (QCOM), for Apple and Samsung
phones. This is a good play on the growth of mobile communications. Minus
excess cash, SWKS sells for 9x FY14 expected earnings and revenue is growing by
double digits.
Calgon Carbon (CCC): It’s a play water Scarcity around the world of usable water,
especially in Asia. Even in the US the largest water reservoir is depleting and
the need to water in only going to increase. Also there is demand in Europe.
CCC recently did a 50m buyback. The company can also become a potential
takeover target. Some of its comps. are Xylem, Pall Corp, Watts Water and
EcoLab. Starboard is an activist in the firm, owning 9% of the company and
recently filed a 13D.
American Eagle Outfitters (AEO): The stock has fallen 20% in 12 months on revenue fall of 2%
and same store sales down 7%. Blamed on women's division. However, AEO has a
debt-free BS and $2 a share in cash, and a nice dividend yield of 3.1%. AEO has
shareholder-friendly management. Teens are in constant need of wardrobe
replenishment and updating. ROE is 18%. Fair value according to some industry
insiders is approx. $ 21. AEO stands out in a market where other stocks are at
or near record highs.
Prooftpoint (PFPT): On demand data protection systems, including
threat protection, regulatory compliance, achieving and governance as well as
secure communication . Might be
a takeover target in the future. Firm has good balance sheet. Might be worth a
look.
Infinera
(INFN): It’s a play on growing demand for data, leading to growing
demand for optical network equipment and infrastrcuture leaders. The company is
betting on its new Photonic integrated circuit (PIC), used inside optical
transport platforms. it has the world’s only commercially deployed large scale
PIC, which it believes is a game changer for its cost scalability and speed.
Might be worth to take a look at the company.
