Skyworks Solutions (SWKS), a company that makes components for cell phones among other things, is one of my favorite stocks. There is a lot to like about the company such as their track record of meeting or beating earning expectations or their lack of long term debt.
Recently the price has fallen to the mid 90's from a high of $116 in November. Such a drop might scare off many investors but it is typical of Skyworks. Even though they beat Q4 earnings expectations, the stock price has dropped. I believe this is due to high institutional ownership: when the whales exit the pool the water must sink. It is not unusual for the stock to drop earnings. This doesn't necessarily mean that any particular fund manager has lost faith in the stock as funds may sell for a variety of reasons.
I believe that the stock is under priced and a good buy. I added to my position on Friday. I want to stress that the stock is volatile and should not be bought by the faint of heart. This is a stock that rewards patience! My price target for this stock is around $120.
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