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Actionable news in CY: Cypress Semiconductor Corporation,

Cypress Semiconductor Looks Ready For A Rebound

Summary

Cypress Semiconductor had a difficult first half of 2015 when it completed a large merger and had two consecutive quarters of losses.

Expectations are that Cypress earnings should recover over coming quarters and cover the generous and reliable dividend.

Due to the fact the share price is at traditional lows despite the fact that earnings are expected to recover, Cypress represents a good value for patient investors.

Background

As primarily an income investor, I don't write about tech stocks regularly. However, I always have my eye on them when a nice opportunity presents itself. For instance, I wrote an article about Analog Devices (Analog Devices: Is it Worth Throwing Some Chips at This Company?) published on 2 September 2014, which concluded that ADI was a good value. ADI closed at $50.62 on the date of that article, and the most recent close was $56.89, a gain of over 12% - in addition to the secure and growing dividend. Tech stocks can be very good investments for income investors when chosen judiciously.

I've been following chip stocks since the 1990s, and at times invest in them heavily. Semiconductor stocks have been out of favor during 2015. The iShares PHLX SOX Semiconductor Sector Index Fund (NASDAQ:SOXX) is down over 9%, industry leader Intel (NASDAQ:INTC) is down 12%, and Advanced Micro Devices Inc. (NASDAQ:AMD) recently announced that it was cutting 5% of its workforce. Looking through a wreckage, though, often turns up overlooked possibilities, and one of those is Cypress Semiconductor Corp. (NASDAQ:CY).

Cypress is a reliable dividend payer with a depressed stock price. Sometimes, you have to look outside the box for opportunity. If you only consider stocks when everybody loves them, you are headed for disaster. For the contrarian inside you, Cypress may be right up your alley.

Cypress specializes in providing digital and mixed-signal integrated circuits and programmable systems for chip products used by electronics manufacturers. Its products are key components of touchpads and touch screens as well as USB components and RAM systems. You will find Cypress products in industrial, mobile device, automotive, military and consumer applications.

Cypress Has Had a Bumpy 2015

In March 2015, Cypress completed a $5 billion all-stock merger with Spansion, Inc., and that affected all of the company's financial metrics. According to the...


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