April 15, 2010 | They say it's A Random Walk Down Wall Street, and most days I'll agree, but this week the exception to the rule has been clearly demonstrated.
On Monday, Jim reported that the hype had finally gotten to him (as if we were surprised!) and he had purchased an iPad, the new toy from Apple that all the technoratti have been salivating over for months.
About that same time, I had come to the conclusion that the run-up in price of Cirrus Logic (CRUS) stock had about reached its limit. It had made a new peak the previous week, but the peak was followed by two consecutive down-days. I considered taking profits before what seemed the inevitable relapse.
But then a strange thing happened. On Wednesday, CRUS started up at the beginning of the trading session and eventually closed up 6% on the day, for no apparent reason.
This morning it all became clear: Next Inning Technology Research, an online investment newsletter, reported the results of its "tear-down" tests of the iPad and identified "winners" based on the function of their parts in the iPad (apparently they took one apart to see who made the various pieces inside).
McWilliams [editor of Next Inning Technology Research] has now confirmed that Atmel, Linear Tech, Samsung, NXP, Texas Instruments, Intersil, Broadcom, STMicro, and Cirrus Logic all have design wins in the new Apple iPad.
Accordingly, I wrote to Jim:
I for one would like to personally thank you for your purchase of the iPad (even though it sounds like one of those feminine hygiene products). It is rumored that Cirrus Logic has a big "win" in the components used in the iPad, and that explains the exhuberance shown for CRUS yesterday. I am so grateful. Thanks.
Jim replied that he'd take his cut "in Saphire, preferably over ice."
I didn't say my gratitude was limitless!
Last updated on Apr 13, 2018