Lattice Semiconductor Jumps 9%
A more confident tone from management and a stable quarterly report pushed Lattice Semiconductor up 9% today.
Revenue was a few million less than hoped for; a $6 million payment that had been penciled into the quarter was not received.
Product margins were much better than expected, mainly due to higher sales of more profitable industrial products. A loss of one penny was in line with estimates. The company is on track to deliver $.44 of earnings this year.
Although no new guidance was released, management reiterated that the first quarter would be the trough for revenue. New wins with major consumer customers increase visibility into a stronger second half of the year.
Solid wins in drones, virtual reality headsets and camera technology products highlight Lattice’s strength in low cost, high definition imaging and super-high-speed connectivity tools. Lattice should start to creep higher in anticipation of these product launches.
Robust cash flow of $23 million sets the company on solid footing to feed demand.
Lattice Semiconductor is buy rated with a $10 target.
Stock Talk
Jon D.
Somehow a target of $10.00 does not come close to hyperbole of “life changing wealth”. It did well in going up 9.25%; however this only means it is still not up to what I paid for it. It seems to me all of your readers don’t deserve statements like for every 10,000 invested we can make over 200,000 in profits.
Just to be clear I do not mean Robert Frick, or Linda McDonough.
False promises don’t make for happy customers Investing Daily.
Stu B
Jon,
I’m with you. Life-changing wealth indeed. Up 9%? It gapped down to $4.98 the morning of the 10th, and then went up to $5.85 for about 20 minutes, finished the day at $5.40.Nowhere in the solicitation for this service did it mention I would have to be glued to a screen 24/7 and day-trade this puppy.Still 10% under water.
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PVP
Appreciate if stock symbol would ALWAYS be included in writings
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Guest User
Agree with Jon D. was this a pump and dump for someone?
Linda McDonough
Hello all,
My target on Lattice Semiconductor (Nasdaq: LSCC) is tied to the earnings I can reasonably estimate based on earnings the company has already reported and the guidance given. Most successful stocks do not start out with huge targets but excel as those target move up with better earnings.
There is the potential for that target to move higher if the company delivers on some of the OEM products it is discussing. I have reiterated management’s guidance that the first quarter would likely be the lowest point for revenue but that significant increases will not arrive until the second half of the year.
It is encouraging that WiGIG products are finally being announced, which should help Lattice’s profits. I expect we’ll have a better picture of those prospects by the next quarter.
I’m not sure what the reference to pump and dump is as I am not allowed to trade quickly in and out of the stocks that I recommend. I apologize about the lack of stock symbol and will do my best to include them in every post.
Best,
Linda
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ehr59
LSCC has not been above 9 since 2003, and has traded in a range from 8 to 2 since that time. It has not participated at all in the last two bull runs. That means something else is wrong here.
I don’t see this stock as any more than gambling, so maybe I need some help to understand why and how LSCC meets the WE SO criteria? The amount of institutional investment is surprisingly high for a stock under $10. My analysis tells me it will drop to 4.75 before going higher.
Linda McDonough
You are correct that Lattice has a different profile than many of the other Growth Stock Strategist stocks. This is a name that I carried over from Jim Fink’s Road Runner portfolio because I liked its prospects in WiGIG. Lattice has been working through a gigantic and frankly messy acquisition of Silicon Image. It did however give them some very valuable technology. Products with the new technology are just being rolled out and Lattice’s numbers are improving. The company posted very strong cash from operations last quarter versus negative cash flow the previous year. I am keeping it on a tight leash but feel quite optimistic is has turned the corner.
Best,
Linda
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Jon D.
A question to Robert and or Linda,
people involved with personal finance and Growth Stock strategist frequently see a write up about how $10,000 invested in LSCC can become worth 214,000.
My question is: can you give us an approximate timeframe within which this may occur please?
To be clear on a May 10 post I sent in it was LSCC I was referring to.
Linda McDonough
Jon,
Lattice is surely one of the higher risk-higher reward names in the portfolio. The technology is just being adopted so mapping out the gains is tricky. Although CRAY missed its recent quarter due to a delay in a big order and component shortages, its technology is totally proven and the numbers should roll in now that NVIDIA and Intel are producing their high end chips. A less risky play if you’re looking for a tech play with a more clear profitability path (with 70% upside!)
Best,
Linda
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