My “love the company, don’t love the stock” position on Texas Instruments (TXN) hasn’t changed all that much, and with the shares up about 8% since my last update (slightly better than the SOX index, slightly worse than the S&P 500), I don’t feel like I’ve missed out on much by not owning the shares. To be clear, TI was, is, and likely will remain one of the best-run semiconductor companies, but expectations have gotten high and it seems as though the Street may be getting a little more nervous about how much juice is left to squeeze in the sector.
While I can still see a path to $200-plus in the short term, I think TI’s priced more for mid-single-digit annualized long-term returns today, and that’s not enough for me, though I’d certainly rather own TI than a bond with similar return potential.
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