So Texas Instruments
The lack of drastic market action should come as no surprise. After all, few companies are as diligent as TI when it comes to keeping investors updated on how its business is doing. The last mid-quarter update was pretty gloomy, although management explained away the immediate 5% drop in the ensuing conference call. But that Band-Aid didn't last, and TI shares had fallen back to that 5% lower level in advance of the full earnings report.
The second-quarter results actually managed to surprise the Street in spite of the torrential status updates. Sales are still suffering from the disasters in Japan, and strong sales to wireless infrastructure customers such as LM Ericsson
What's worse, TI then issued revenue and earnings guidance with midpoints significantly below the current Street tenor. And the market just shrugged and moved on. Perhaps we'll see another long, slow descent here, like the one that led into this week's report.
The bears see weakness stretching into the fall. Nomura Securities re-upped its sell rating and $26 price target, noting that there might be more guidance cuts up ahead. Even bulls like Needham, with a buy rating and $38 target, see a second half below the normal seasonal trends.
The faster TI can close the National Semiconductor
Until then, I think Texas Instruments shares will remain affordable, particularly as relative newcomers to the mobile processing scene such as NVIDIA
The best course of action for a stock like that is to keep a close watch on it until conditions are improving -- nobody wants to grab a falling knife by the blade. Just click here to add Texas Instruments to your watchlist, and we'll take it from there. That opens up a steady stream of news and Foolish analysis on TI, or any other stock you'd like to follow.
Fool contributor Anders Bylund holds no position in any of the companies discussed here. The Motley Fool owns shares of Texas Instruments. Motley Fool newsletter services have recommended buying shares of NVIDIA. Motley Fool newsletter services have recommended writing puts in NVIDIA. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. You can check out Anders' holdings and a concise bio, follow him on Twitter or Google+, or peruse our Foolish disclosure policy.