5 Head-Scratching ‘Smart Money’ Moves

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Westfield Capital: Skyworks Solutions

Skyworks185 5 Head Scratching ‘Smart Money’ MovesWestfield Capital is hardly a household name, even within investor circles. Then again, neither is Skyworks Solutions (NASDAQ:SWKS). Nevertheless, the fact that Westfield Capital sold a big chunk of its Skyworks position is a big deal. It might have been unnecessarily conservative, however.

Skyworks Solutions makes components for smartphones, the advent of which has been a real boon for the company. Yet, when one company makes up such a big portion of your sales, riding coattails also poses a big-time risk; what happens if that customer dumps you as a supplier? And yes, we’re talking about Apple (NASDAQ:AAPL).

Sometimes, though, you just have to “go with it” and appreciate that Apple’s taking over the world. And the forward-looking P/E of 13.8 is unusually low for a company that’s expected to grow its bottom line by more than 30% per year over the next three years.


Article printed from InvestorPlace Media, http://investorplace.com/2012/08/5-head-scratching-smart-money-moves-ge-c-fb-swks-cvh/.

©2014 InvestorPlace Media, LLC

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