Apple (AAPL) had another blowout quarter after the close on Tuesday. I will not go into the details on their amazing report, as it has been discussed in painful detail all over the web. However, their quarterly report should bode well for the contractors that supply the components that go into Apple's iPads and iPhones. One component maker that should benefit is TriQuint Semiconductor (TQNT).
TriQuint Semiconductor - "TriQuint Semiconductor, Inc. provides radio frequency (RF) solutions and technology for communications, defense, and aerospace companies worldwide. The company designs, develops, and manufactures RF solutions with gallium arsenide (GaAs), gallium nitride, bipolar high electron mobility transistor, surface acoustic wave (SAW), temperature compensated surface acoustic wave, bulk acoustic wave (BAW), copper flip, and wafer level packaging technologies". (Business Description from Yahoo Finance)
7 reasons TQNT has significant upside from just over $5 a share:
- It has a robust balance sheet with over $200mm in net cash (over 15% of market capitalization) on its books.
- Insiders have been net buyers of the stock over the last six months.
- The stock has a PE of under 11.5 forward earnings, under its five year average (14.4).
- TriQuint is selling at just 91% of book value.
- The stock sells at just 9 times operating cash flow. OCF in 4Q2011 came in much stronger than in recent quarters at over $45mm.
- The median analysts' price target from the 8 analysts that follow the stock is north of $7 a share.
- Based on Apple's quarter, I would expect estimates to be raised for FY2012 and FY2013 over the next few weeks.
Additional disclosure: May also initiate a long position in TQNT in the next 72 hours