Monday, March 12, 2007

Texas Instruments (TXN) Mid Quarter Update

There's been a spring in the step lately of Texas Instruments (TXN). The stock is now challenging tough overhead resistance in the $33 area. Ahead of its mid quarter update this evening a numbers of analysts are saying nice things about the stock. Earlier this morning JP Morgan said TI's book to bill ratio is above 1 and shares could trade above $40 this year. Pacific Growth things TI could guide above the mid-point of previously state guidance, which is $3.145 bln. Bank of America sounds a note of caution saying TI will likely tighten guidance with a bias to the low end. Today at the money March 37-1/2 put volume is trading at a roughly 2 to 1 margin over the calls. I'm not playing this one this evening, but it is intriguing how TXN shares have had a tendency to fill gaps with one needing to be filled from earlier in the month.

2 comments:

TRS said...

Hi Jim
The bar has already been set low by TXN when they warned in their Jan. 23 4th Q cc. They may guide a bit higher but that does not change the fundamentals of that industry. What they say about restarting factories for increased production (which they said they planned on doing during their 4th Q c.c. will be important). I am short TXN.

Jim K said...

TRS, good luck. given the upside resistance, gap filling history, etc... looks like a good short.