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Sumeet Vatsa
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I have been investing for over four years and have gone through booms, busts and flat cycles of the market. Yep, decent experience in short duration. I am an avid student of market and analyze almost all of the trades that I make, especially the ones that go belly up. I have gone through the... More
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  • Four Growth Stories – SWKS, SWI, EQIX And SCSS 0 comments
    Jul 30, 2012 12:33 PM | about stocks: SWKS, SCSS, EQIX, SWI

    SWKS

    Skyworks designs and manufactures several types of chips that enable wireless capabilities in cell phones and tablets. The company's circuits are used in the devices of Apple, HTC and Samsung. Long known as a Power Amplifier (PAs) manufacturer, the company now offers the full range of analog, radio-frequency (i.e., RF), and power management circuits between the handset transceiver and antenna. It has recently added power management circuits to its portfolio.

    SWKS reported solid fiscal third-quarter earnings and gave investors a bright fourth-quarter outlook.

    Mar-11 75% 33%
    Jun-11 40% 25%
    Sep-11 33% 30%
    Dec-11 -10% 20%
    Mar-12 -33% 13%
    Jun-12 60% 10%

    SWI

    SolarWinds has been on a tear for the last year and a half; the company's second-quarter sales increased by 40% year over year to $64 million-the fifth straight quarter that SolarWinds' year-over-year sales growth has accelerated-and beat management's first-quarter guidance of $59.0 million-$60.2 million. SolarWinds' performance is particularly impressive because the company is focused on growing its operations in a tough European market.

    Break out buyers - $48 was break out point, but in this market just initiate a 50% position.

      EPS Change Sales Change
    Mar-11 31% 25%
    Jun-11 28% 29%
    Sep-11 49% 31%
    Dec-11 21% 34%
    Mar-12 40% 40%
    Jun-12 50% 40%

    EQIX

    Equinix is the largest network-neutral provider of data centers in the world. Equinix's customers have the ability to plug into a host of network providers to speed up connections to content partners, financial exchanges, ad servers, and the like. As Internet traffic grows as a result of cloud computing, video streaming, and continued enterprise outsourcing of data centers, managing bandwidth and network connections becomes more complex.

    This company serves 4000 clients and routes almost 90% of world's internet traffic.

    Only concern I have is the slowing growth.

    Mar-11 50% 85%
    Jun-11 1400% 33%
    Sep-11 -13% 30%
    Dec-11 30% 28%
    Mar-12 40% 27%
    Jun-12 15% 18%

    Market generally doesn't like slowing growth specially for high multiples company.

    SCSS

    I have owned this company in the first quarter of the year and again started a position last week. No, I don't have a crystal ball, I bought it after the earnings. The company makes sleep number mattress and has been on a roll for over last 6 quarters.

    I have buy orders in place at $25.5.

    • Sales were up 27% YoY.
    • Same store sales were up 25% YoY, unchanged from the 25% for the same quarter last year.
    • The company was able to achieve an EPS of $0.3. This was 11% higher than the Street's estimate of $0.27.
    • The number of stores is being increased from 381 last year ending December 2011, to the 408-412 range at present.
     

     

      EPS Change Sales Change
    Mar-11 114% 22%
    Jun-11 82% 16%
    Sep-11 63% 25%
    Dec-11 85% 27%
    Mar-12 33% 40%
    Jun-12 51% 27%

    For additional information please visit my blog.

    Disclosure: I am long SWKS, EQIX, SCSS.

    Stocks: SWKS, SCSS, EQIX, SWI
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