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Texas Instruments (TXN). Nipun Singh Yash Maniar. Recommendation . Buy: Limit at $25.75 Sell: Stop at $27.50. Background. Founded in 1930; named Texas Instruments in 1951 Based in Dallas, Texas Total Revenue Last Year : 12.50B Gross Profit Last Year : 6.24B Net Income : 1.92 B.
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Texas Instruments (TXN) Nipun Singh Yash Maniar
Recommendation • Buy: Limit at $25.75 • Sell: Stop at $27.50
Background • Founded in 1930; named Texas Instruments in 1951 • Based in Dallas, Texas • Total Revenue Last Year: 12.50B • Gross Profit Last Year: 6.24B • Net Income: 1.92 B
What They Make • Most of its sales comes from the semiconductor business, not scientific calculators • Biggest applications of chips: • DVR • X-Rays • GPS • Digital Sound Processing in hearing aids • DLP TVs • Blu-Ray • Mp3 • Finger-Print Biometrics • Ultrasounds
Current Price: $24.18 Range 24.01 - 24.88 52 week 13.70 - 27.00 Open 24.55 Vol/Avg. 18.41M/12.45M Mkt cap 30.29B P/E 33.64 Div/yield 0.12/1.99 EPS 0.72 Shares 1.25B Beta 1.13 Inst. own 78% Current Statistics
Earnings Report • Coming out with earnings report Jan. 25, 2010 • Expected EPS from Analysts v. Actual Per Year:
Earnings Report • History of Expected EPS vs. Actual per Quarter
Expected Earnings This Year • As seen in previous slide, TXN continually surpasses expectations for earnings • Estimated Earnings this year after Earnings Report comes out: $0.493
Competitors • STMicroelectronics • Motorola • Intel TXN vs. Intel, STM, and Motorola
Competitors • Analog Devices, Inc • Fairchild • Broadcam • National Semiconductor Corporation TXN vs. ADI, Fairchild, Broadcam, and NSM
Why Buy? • Why should we buy? • Intel Corporation had an amazing earning report recently and according to analysts, this news is good for Intel’s peers and competitors, because they are in the same sector • Why not buy its competitors? Texas Instruments’ earnings report is coming up soon, and market may cool down by the time of the other company's earnings reports
Why Buy Over Competitors? • Analog Devices, Inc: Jim Cramer on his show, Mad Money, explicitly stated that this stock was too “hubble” and too risky • Intel: Already soaring due to earnings report, prices already too inflated • NSM: Texas Instruments is already doing better than NSM and prices are sure to increase after its earnings report comes out
Sources • http://www.reuters.com/article/idUSTRE60D5XJ20100116?type=globalMarketsNewsI • http://www.google.com/finance?q=txn • http://finance.aol.com/quotes/texas-instruments-incorporated/txn/nys