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Wednesday, July 26, 2006

TI And The Cell Phone Nation

Stocks: (TXN)(NOK)(MOT)(SNE)

It is incomprehensible that TI is not trading at its 52-week high. But, it is not eve close. The company trades at $29 on a 12-month range of $36.40/$26.77.

Revenue for the most recent quarter was up 24% to $3.7 billion. Some of TI's largest customers are growing at a rapid clip: Motorola, Nokia, and Sony/Ericsson.

Even Wall St. is bullish on TI's future prospectsas heard from a Banc of America analyst: "Texas Instruments can continue to outgrow the semiconductor market with its strong positive in key segments including wireless handsets," said Sumit Dhanda, an analyst for Banc of America. But, after a brief bump when earnings were announced, there has been no follow-through buying wave.

TI has have exposure in the semiconductor industry, which is in turmoil on its best day. But, TI said that orders booked were up, again $767 million from the same quarter a year ago.

At this point, the reasons for the stock to rise outnumber those that would cause it to drop. It should trade closer to $36.

Douglas A. McIntyre can be reached at He does not own securities in companies that he writes about.

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