Tracking Two Names

 | Dec 14, 2012 | 1:30 PM EST  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

swks

,

allt

,

aapl

,

pkt

Editor's note: This Breakout Stocks alert was sent out to subscribers at 11:49 a.m. EST on Dec. 14. To sign up for a free two-week trial, click here.

Two of our model portfolio names are trading lower this morning. This is an update on these names and we are not taking any action in this Alert.

Shares of Skyworks Solutions (SWKS) have been under considerable pressure in reaction to negative commentary aimed at Apple (AAPL). The shares were recently trading down 6.8% on the day to $19.61.

Over the past few days, we have seen a marked negative shift in sell-side analysts' opinions of Apple, which accounts for approximately 20% of Skyworks' sales. These include, but are not limited to, Macquarie's downgrade of Apple's contract manufacturer, Hon Hai, on Thursday, and UBS's decision to lower its estimates and price target on AAPL on Friday. The main concerns center on deteriorating iPhone demand, iPad cannibalization and an overall slowdown in growth. However, other analysts continue to pound the table on Apple shares, including Piper Jaffray, which insists that demand is not slowing.

Apple is in the process of launching its newer products internationally and today marks the first day that the iPhone 5 is available in China. We believe that strong sales in the new markets could easily overshadow the recent concerns, but we prefer to wait for these results before altering our current position. We remain upbeat on Skyworks as premier play on the mobile megatrend, and remain convinced that the stock undeservingly trades at a discount to its peers.

Next, shares of model portfolio holding Allot Communications (ALLT) have been declining since Wunderlich downgraded the company on Thursday. The shares are currently trading 4% lower on the day at $17.00.

This morning, Sterne Agee defended Allot competitor Procera Networks (PKT), insisting that the stock's selloff was a buying opportunity and there has been no shift in its fundamentals. We believe that what is good for one should be good for the other, and agree that there has not been a fundamental shift in Allot's business. After speaking with Allot management yesterday, we are confident that its long-term opportunities remain intact and that the company will continue to execute.

Columnist Conversations

Bed, Bath & Beyond (BBBY) surpassed expectations on both revenues and EPS. Plenty of short covering going...
one ugly close today. long time since seeing this type (bearish on close) tape action. the rather large buy-di...
Valero Energy (VLO) has been under pressure for the past month, and has broken beneath key support at its 200-...
BBRY is trading $10.44, down 4.5% with IV30™ up 6.0%. Full Story: BBRY - See it to Believe it and Why: ...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.