4-Star Stocks Poised to Pop: Cypress Semi

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Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, broad line chip maker Cypress Semiconductor (NYSE: CY) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Cypress' business and see what CAPS investors are saying about the stock right now.

Cypress facts

Headquarters (Founded)

San Jose, Calif. (1982)

Market Cap

$1.5 billion

Industry

Semiconductors

Trailing-12-Month Revenue

$683 million

Management

Co-Founder/CEO Dr. T. J. Rodgers

CFO Brad Buss

Return on Capital (Average, Past 3 Years)

(2.3%)

Cash / Debt

$245.6 million / $27.7 million

Key Customers

Research In Motion (Nasdaq: RIMM)
Palm (Nasdaq: PALM)

Whirlpool (NYSE: WHR)

CAPS Members Bullish on CY Also Bullish on

Apple (Nasdaq: AAPL)

Cisco Systems (Nasdaq: CSCO)

CAPS Members Bearish on CY Also Bearish on

Ford Motor (NYSE: F)

Sources: Capital IQ (a division of Standard & Poor's), Morningstar, and Motley Fool CAPS.

On CAPS, 95.1% of the 719 members who have rated Cypress believe the stock will outperform the S&P 500 going forward. These bulls include Alberio and All-Star Teacherman1, who is ranked in the top 10% of our community.

Just a couple of months ago, Alberio reminded Fools that, "Cypress has focused in markets where it does dominate (i.e. SRAM or USB) and markets where it can dominate (i.e. programmable consumer solutions like capacitive touch, touch screen, LED lighting control)." Our CAPS member concludes: "Couple this with a single minded focus on cost reduction and you have a money making machine."

In a pitch from last week, Teacherman1 expands on the chip maker as a potent place to push in some chips:

At the end of 2Q it had assets of better than 3 times total liabilities. Its cash and near cash were greater than its total liabilities, and it has virtually no debt. ... With a recovery in the economy and sales coming back to historical levels, they are poised for strong growth from their current position. They did show relatively small losses for the first two quarters of 2009, but this is again on a continued low sales level. They have some new products coming on line, which along with economic growth should make them a very good candidate to be at least a "3 bagger" from their current level.

What do you think about Cypress, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Apple is a Motley Fool Stock Advisor selection. The Fool's disclosure policy always gets a perfect score.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On October 09, 2009, at 3:37 PM, SageOrFool wrote:

    I have been observing DJI stocks which struggle. They have a similar pattern. Let's take Research in Motion as a template; Rim lost 22% of its value this September. Since the 4th of October the daily trading of Rim shares had exceeded 16 million, more than the daily average volume for Rim, the share price had been trading up from 0.7% to slightly less than 2%; this indicates a offloading trend with controlled PUT options allowing Rim shareholders to unload and salvage as much value as they can without causing Rim stock panicks. In other words, this is a fire exit for Rim shareholders to escape being burned by Rim stocks which had already been on fire within, this is not a fire drill. Given until the 16th of October, when sufficient Rim shares have been offloaded, if the Rim share price starts trading at -3% or less for more than 3 days contiguously, it would trigger another October exodus of Rim shareholders which may see earthquaking declines far exceeding Rim's September declines. After all, Rim is a declining stock in the eyes of 38 of every 40 anaylsts, and analysts have seldom been wrong in Octobers.

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Related Tickers

11/23/2009 11:49 AM
RIMM $60.91 Up +1.19 +1.99%
Research In Motion… CAPS Rating: ***
PALM $11.67 Down -0.07 -0.60%
Palm, Inc. CAPS Rating: *
F $8.71 Up +0.07 +0.81%
Ford Motor Company CAPS Rating: **
WHR $71.75 Up +2.09 +3.00%
Whirlpool Corp CAPS Rating: **
AAPL $204.67 Up +4.75 +2.38%
Apple, Inc. CAPS Rating: ***
CSCO $23.82 Up +0.36 +1.53%
Cisco Systems, Inc… CAPS Rating: ****
CY $9.73 Up +0.16 +1.67%
Cypress Semiconduc… CAPS Rating: ****

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