3 Stocks to Get on Your Watchlisthttp://www.fool.com/investing/general/2013/03/06/3-stocks-to-get-on-your-watchlist-24.aspx Sean Williams
March 6, 2013
I follow quite a lot of companies, so the usefulness of a watchlist to me cannot be overstated. Without my watchlist, I'd be unable to keep up on my favorite sectors and see what's really moving the market. Even worse, I'd be lost when the time came to choose which stock I'm buying or shorting next.
Today is Watchlist Wednesday, so I'm discussing three companies that have crossed my radar in the past week -- and at what point I may consider taking action on these calls with my own money. Keep in mind that these aren't concrete buy or sell recommendations, nor do I guarantee I'll take action on the companies being discussed. What I can promise is that you can follow my real-life transactions through my profile and that I, like everyone else here at The Motley Fool, will continue to hold the integrity of our disclosure policy in the highest regard.
Skyworks Solutions (NASDAQ: SWKS)
Last month the RF supplier market (of which Skyworks is also a member) received quite the scare when Qualcomm (NASDAQ: QCOM) unveiled its next-generation all-in-one RF360, which is capable of dealing with band fragmentation on the front-end and would make the current RF components mostly dead weight. This is terrible news for weaker-positioned RF suppliers like RF Micro Devices, which have been scrambling to produce 4G LTE-capable components. RF Micro, for instance, has been reducing its reliance on Nokia, but still counts quite a bit of revenue from 2G and 3G RF sales to the company.
Skyworks, on the other hand, has a tight-knit relationship with Apple and that isn't likely to change anytime soon. Skyworks' most recent quarter -- which saw it report revenue of $454 million, up 15% from the year-ago period, and EPS of $0.55 -- handily surpassed analysts' expectations. As icing on the cake, Skyworks ended the quarter with nearly $2 in cash and no debt. With ample R&D funds on hand and a bare-bones forward P/E of just 8, I feel Skyworks could be primed for a big move this year.
Endeavour Silver (NYSE: EXK)
Just last week Endeavour delivered its ninth straight increase in proven, probable, indicated, and inferred resources on the heels of its eighth straight year of rising production. Silver equivalent proven and probable reserves now sit at 34.2 million ounces, up 67% from year-end 2011, while inferred resources rose by 92% to 87.1 million silver-equivalent ounces, or SEO. In January, it delivered 33% year-over-year SEO growth. With El Cubo's expansion well under way, it wouldn't be crazy to expect SEO production to rise by perhaps 1 million or more SEO this year.
On top of this, global weakness and demand from the tech sector should create enough of a buoy to put a floor under silver prices. Unless we see a near-halving in silver prices, Endeavour will remain incredibly profitable. The further it falls, the closer