Texas Instruments (NYSE: TXN) fell after announcing that revenues and earnings fell slightly on weaker demand for its calculators and other products. But that news has not deterred Mark Skousen, who states, "I'm still upbeat that Texas Instruments will turn the corner and move higher."
Indeed, the editor of The Turnaround Trader says, "Though most tech stocks are selling at lofty heights, I consider Texas Instruments a real bargain."
Skousen continues, "With profit margins at 30% and an expanding market around the globe, Texas Instruments has an impressive track record of increasing free cash flow."
In addition, he notes, the company has built up $3.3 billion in cash with no debt. Last quarter, he notes, revenues and earnings fell slightly, but that he says is "an anomaly." He suggests, "TXN has been on a roll for several years, and there's no evidence of it turning back.
The advisor concludes, "Texas Instruments reached $100 a share during the go-go years of the Internet bubble, but today it is at a third of its all-time high. It's time to get aboard."
For more aggressive traders seeking "potentially greater rewards", albeit with much higher risk, the advisor suggests the January $45 calls.
Each day, Steven Halpern's TheStockAdvisors.com features the latest investment ideas and market commentary from the financial newsletter community.
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