Wednesday, October 27, 2010

Atheros Communications (ATHR) Continues to Show Life

Atheros Communications (ATHR) continues to rise from the dead, post earnings report Monday evening.  My "flier" purchase late Friday thus far is up 9% - not a huge position but I am now tempted to add more as the stock remains dirt cheap relative to growth rate.  Unfortunately the greater market is so extended, it is hard to pile into anything with confidence.  While not part of the cloud, the move of the internet from computers to smart phones is another mega trend, and frankly ATHR could double in valuation and trade at half the value of many of the 'hot cloud' stocks.

The positive earnings news from Broadcom (BRCM) last night is most likely the driver today.
  • Broadcom reported net income of 60 cents a share on revenue of $1.8 billion. Excluding certain items, earnings were 74 cents a share, better than estimates of 71 cents a share. Mobile and wireless revenue surged
  • ....a Baird report that says “momentum in the quarter was primarily driven by wireless, the result of strong smartphone trends.
Long Atheros Communications in fund; no personal position


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