Maxim Meets Lowered Estimates
By William Trent, CFA of Stock Market Beat
Maxim Integrated Products (MXIM) reported earnings that matched expectations following last month’s pre-announcement. The company reported net revenues of $502.7 million for its fiscal first quarter ended September 23, 2006, a 1.5% decrease sequentially.
Although revenue declined, inventories rose 5.1%, in keeping with our thesis that there is too much capacity. Furthermore, property, plant and equipment (a proxy for manufacturing capacity) rose 7.9%, in keeping with our theory that the inventory situation is going to get worse.
The author may hold a position in the securities discussed. The author's current holdings are as follows: Long: Intuit (INTU) put options; Nasdaq 100 (QQQQ) put options; Bookham (BKHM; Ballard Power (BLDP); Syntax Brillian (BRLC); CMGI (CMGI); Genentech (DNA); Ion Media Networks (ION); Lion's Gate (LGF); Three Five Systems (TFS); Adobe Systems (ADBE) call options; Ceradyne (CRDN); IShares Japan (EWJ); StreetTracks Gold (GLD); Starbucks (SBUX); U.S. Oil Fund (USO); Plantronics (PLT) call options; Short: Lion's Gate (LGF) call options; Dell (DELL) put options; Ceradyne (CRDN) call options; Plantronics (PLT) put options
http://stockmarketbeat.com/blog1/
Maxim Integrated Products (MXIM) reported earnings that matched expectations following last month’s pre-announcement. The company reported net revenues of $502.7 million for its fiscal first quarter ended September 23, 2006, a 1.5% decrease sequentially.
Although revenue declined, inventories rose 5.1%, in keeping with our thesis that there is too much capacity. Furthermore, property, plant and equipment (a proxy for manufacturing capacity) rose 7.9%, in keeping with our theory that the inventory situation is going to get worse.
The author may hold a position in the securities discussed. The author's current holdings are as follows: Long: Intuit (INTU) put options; Nasdaq 100 (QQQQ) put options; Bookham (BKHM; Ballard Power (BLDP); Syntax Brillian (BRLC); CMGI (CMGI); Genentech (DNA); Ion Media Networks (ION); Lion's Gate (LGF); Three Five Systems (TFS); Adobe Systems (ADBE) call options; Ceradyne (CRDN); IShares Japan (EWJ); StreetTracks Gold (GLD); Starbucks (SBUX); U.S. Oil Fund (USO); Plantronics (PLT) call options; Short: Lion's Gate (LGF) call options; Dell (DELL) put options; Ceradyne (CRDN) call options; Plantronics (PLT) put options
http://stockmarketbeat.com/blog1/
posted by douglas mcintyre at 1:58 PM
Subscribe
<< Home