We now see more downside risk than upside potential for one of our previous large-cap stock picks. Additionally, we believe the likelihood of further gains in another stock from our mid-cap portfolio is now offset by fundamental risks and high valuation.
Cypress Semiconductor (NASDAQ: CY) introduced a new automotive capacitive touchscreen controller family that enables screen sizes up to 15-inches with industry-leading performance in harsh automotive environments.
Cypress Semiconductor (NASDAQ: CY) announced that it completed the divestiture of its TrueTouch mobile touchscreen business to Parade Technologies, Ltd. (Taipei Exchange: 4966.TWO), a leading supplier of video displays and interface ICs headquartered in Silicon Valley.
Amazon joined Apple in reaching a $1 trillion market capitalization. $1 trillion is about the same as the total value of New York City property and the total value of loans at JP Morgan, the nation’s largest bank in terms of assets. Jeff Bezos’ $160 billion stake would place him (personally) as the #33 largest company in the S&P 500 in terms of market cap, next to Coca-Cola, Disney and Netflix. We aren’t bold enough to predict whether the shares will continue upwards or if they are in a bubble reaching maximum inflation. Setting aside for a moment their investment prospects, let’s admire the truly remarkable milestone that these two companies have reached.
EV/EBITDA: What Is It & Why Are We Using It More?
In reading recent editions of The Turnaround Letter, you have probably noticed that we are increasingly using EV/EBITDA as a valuation measure, rather than the better-known price/earnings multiple. We thought it might be useful to describe this measure and why we like it.
This Forbeswrite-up follows up on the recent Top Stock Tips report--naming The Turnaround Letter's Crocs recommendation the top performer of 2017: With 90% gains, CROX beat out 100 other investment ideas included in the report; and the stock continues to have value investing appeal, according to Putnam.
George notes, "We see additional upside for the stock in 2018 as management's efforts continue to bear fruit, though the gains will likely be more muted than we saw in 2017."