When it comes to politics, I consider myself a small “l” libertarian. Well, I’m actually more like a classical liberal, but sadly, these days not too many people know what I’m talking about when I describe myself as such. Now, as a trader, I try not to let politics influence my analysis of companies to buy and sell. Yet sometimes, I find that I just can’t divorce my political views from my trading views.
That’s the case with Cypress Semiconductor (CY). In this company, principled values, politics, fundamentals and technicals all make this stock a libertarian tech trader’s dream.
The catalyst for this love fest, as well as for the double-digit percentage spike higher in CY shares on Thursday, was the company’s stellar Q2 earnings beat. The semiconductor manufacturer said that it saw revenue of $193.5 million in the second quarter, or earnings per share of 14 cents. The consensus forecast was for revenue of just $182.8 million and EPS of 7 cents. Cypress cited strong sales of its TrueTouch controllers as a chief reason for its Q2 success.
Great top- and bottom-line performance, as well as a share price spike that’s taken the stock to levels it hasn’t seen in nearly a year, are reasons enough to like CY here, but what about the libertarian angle?
Click to Enlarge Here I’m referring to Cypress co-founder and CEO T.J. Rodgers.
Rodgers is the kind of CEO who is proud of making money, and he’s a well-known proponent of the libertarian view that endorses laissez-faire capitalism. I love Rodgers because he is not afraid to stand up and speak out for the cause of liberty. He famously stood up to Jesse Jackson’s attempt to paint Cypress Semiconductor with the racial insensitivity brush. He also stood up to The Sisters of St. Francis of Philadelphia, when that religious organization tried to effectively guilt the company into having a more “politically correct” board.
Rodgers is one of an increasingly rare breed of CEOs who stands up for principle, and who refuses to bend to public opinion he doesn’t agree with. For this reason alone, Cypress is a company to consider when investing. And, when the fundamentals and the technicals all happen to line up in a bullish way, the stock is a libertarian tech trader’s dream.
Buy CY at the market, and I think you will see another 10%-15% upside over the next two-to-three months.
At the time of publication, Jim Woods held no positions in the stocks mentioned.