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We have weathered the storm for now. There is a leak back into equities, but it is very defensive (see Annaly Capital Management & Navios Maritime Partners). The widespread flat line since Jan. 2011 was the writing on the wall; the shake-out happened.
Triquint Semiconductor (NASDAQ:TQNT) $7.80 0.38 (5.12%) - As of 8/15/2011

TQNT was hit just before the recent market "risk off". Late July quarterly earnings took the stock down 33% in 2 days - July 27th 14%, July 28th 19% -- EPS was in-line at $0.17, while revenue came in at $228.8M, missing by $8M. Anyone who bought at this time last year would be right back where they started with TQNT still undervalued. What's frustrating to investors is that TQNT jumped 8.6% on July 22nd, 5 days before earnings. There is faith in this company.

One of my first articles highlights the Q2 earnings call and the mysterious dodge away from names like Apple (NASDAQ:AAPL) and RIMM, yet still with excitement for Q4. Here is a simple question; is the plant activity a move for Apple? This is very intriguing to me, because AAPL is a name I strongly believe in, for obvious reasons. To be part of a supply chain belonging to the most important company in the world is a coveted prize.

The competition is Skyworks and Avago - both competitors in the power amp duplexer race. Avago and Triquint are currently in a legal dispute. This was seen as part of the nasty hit to the TQNT Q2 report, resulting in a post earnings sell-off (mentioned above). The more recent mini-crash didn't hurt TQNT quite as badly, thanks to those 2 previous days of big losses.

But now look at what TQNT has done in the past 5 days, making a move from $6.50 to $7.80. Investors are recognizing bargain prices across the board after the shake out. Not just defensive stocks though, but everyone with upside. Everyone is carefully picking up toothpicks in preparedness for the cheese and turkey chunks soon to come, but only if the economy growth engine can turn back over. For TQNT, Q3 appears to be a slow one. Yet the promise of Q4 and beyond, and the rumor of the important partnership with AAPL, is keeping this stock in focus for investors. TQNT was up 5.12% on Monday.

Disclosure: I am long TQNT shares and TQNT Jan/Feb 2012 calls

Source: For TriQuint, Look to the Promise of Q4 and Beyond