Shareholders of TriQuint Semiconductor
Will TriQuint right this sinking ship in 2012, or will the company continue to slip, trip, and fall under the many challenges? Let's have a look.
At a recent industry conference, TriQuint CFO Steven Buhaly said that the smartphone industry continues to drive business. Phone builders are asking for more integrated all-in-one solutions, and chip prices always fall over time, but smartphones are only getting more common and more bandwidth-hungry. All in all, the dollar-value market for signal processors should grow by 15% next year.
I was kind of rough on CEO Ralph Quinsey in my look back at TriQuint's 2011. It seemed like Quinsey was planning a take-no-prisoners price war to get some use out of freshly built manufacturing facilities. Yeah, the company will use price as a weapon -- but mostly in the near-obsolete 2G market. 3G and 4G will be competitive as TriQuint vies with Skyworks Solutions
In case the other guys steal orders from TriQuint in the handset space, the company can turn to the infrastructure side of things. The company is a leading parts supplier to base station builders from Ericsson
So rivals are gathering at the gates, but TriQuint is better armed than I thought and can lean a bit on alternative revenue sources if the main gig goes sour.
Mind you, it's not all roses and rainbows. Fellow Fool Rich Smith worries about TriQuint's restricted cash flows. I still need to see the company winning back some lost market share. In short, I still wouldn't buy this stock today. There are too many truly great investment opportunities in the mobile market to risk capital on a highly uncertain bounce. As an example, here's one brilliant mobile computing idea for your portfolio in 2012.Fool contributor Anders Bylund holds no position in any of the companies mentioned. The Motley Fool owns shares of TriQuint Semiconductor. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinion, but we all believe that considering a diverse range of insights makes us better investors. Check out Anders' holdings and bio, or follow him on Twitter and Google+. We have a disclosure policy.