National Semiconductor's Q3 Above Estimates, but Stock Is Indifferent

National Semiconductor benefited from a welcoming environment. The company's industrial customers increased their demand for analog products. This offset a downturn in wireless handset sales. As for the gross margin, it expanded because of product mix and manufacturing efficiencies.

Net cash from operations for the trailing nine months didn't expand, unfortunately. Approximately $246 million was generated this time around; in last year's similar frame, $292 million was produced.

Overall, I found the quarter's profile to be quite impressive. However, here's what I don't like about the story: the stock performance. If you examine a chart of the company's equity, you'll see what I mean. In addition, from the angle of valuation, I'm not very attracted to the business.

I would pass on buying National Semiconductor. I simply have no interest for it at this point, and neither does the market; at the time of this writing, shares of the tech entity were up by a mere penny. Plus, I was wrong about this investment idea back in September. If I had to consider a chip player, I would take a look at Intel (INTC) first.

Disclosure: I don't own any company mentioned; positions can change without notice.