by Nancy Zambell | May 17, 2011 10:28 am
Mindspeed Technologies Inc. (NASDAQ: MSPD) is the best tech stock to buy in 2011. MSPD stock is up 39% since January 1 and going strong. I recommend investors continue to buy this fabless semiconductor stock, since these gains are only the beginning.
Mindspeed recently reported strong earnings that beat analysts’ estimates, earning $0.01 vs. estimates for break-even, and also trounced revenue expectations, with sales of $38.6 million, compared with analysts’ forecasts of $37.99 million.
Here are some of the highlights of the company’s fiscal second quarter:
Although the industry cleaned out excess inventory, which put a damper on new production, MSPD managed to perform better than the estimates for both revenues and profits.
And Mindspeed sees continued improvement, particularly in optical access, optical transport, optical infrastructure and 4G wireless markets, forecasting third-quarter revenue between $41.3 million and $42.8 million, higher than analysts’ estimates of $40.5 million.
And I have to tell you that the markets were very pleased with this report, giving the shares a boost, which was supported by an upgrade to “buy” by analysts at Needham & Company. Needham said it made the upgrade, based on strength in the WAN Communications business (which makes optical communication products), and greater demand from China.
In other Mindspeed news, the company announced that its Chief Financial officer (CFO) Bret Johnsen resigned effective May 6. MSPD appointed Kristen Schmidt, executive director, finance, as its interim CFO and now is beginning an immediate search for a permanent replacement. Johnsen is going to work as CFO for a private company outside of the semiconductor industry. I see no reason to be concerned with this announcement; this is most likely just a better opportunity for Johnsen.
The company is progressing very nicely toward our goal, and this quarter’s numbers reflect a very positive trend for Mindspeed’s sector.
Check out the other FREE stock picks that make up InvestorPlace.com’s Top 10 Stocks for 2011.
As of this writing, Nancy Zambell was recommending Mindspeed to subscribers of her Buried Treasures Under $10 stock newsletter.
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