For the past couple weeks (and for the next several weeks) I am publicly reviewing my Watch List. This is an important task that all investors should do on a regular basis. Analyzing your investments to make sure they are performing to your standards is essential to your success as an investor. While I am not as popular at Jim Cramer, I do like to follow his advice and announce when I change my mind on a stock.

This week, I removed Caterpillar [stckqut]CAT[/stckqut], Chipotle [stckqut]CMG[/stckqut], and Carbo Ceramics [stckqut]CRR[/stckqut].  For different reasons, each of these companies was not performing to my expectations. If you want to understand this logic, you should read my book, The Confident Investor.   You can purchase my book wherever books are sold such as AmazonBarnes and Noble, and Books A Million. It is available in e-book formats for NookKindle, and iPad.

You can make sure that you are receiving my updates by subscribing to me in several forums:

I hope that you enjoy the continued conversation.

Company name Cirrus Logic, Inc.
Stock ticker CRUS
Live stock price [stckqut]CRUS[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Poor
Sales growth Good
EPS growth Good
P/E growth Fair
EBIT growth Good

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $30.72
Target stock price (averages with growth) $42.68
Target stock price (averages with no growth) $33.86
Target stock price (manual assumptions) $24.85

The following company description is from Google Finance: http://www.google.com/finance?q=crus

Cirrus Logic, Inc. is a United States-based company, which supplies high-precision analog and digital signal processing components for audio and energy markets. The Companys products include analog-to-digital converters (ADCs), digital-to-analog converters (DACs), codecs that integrate ADCs and DACs into a single integrated circuit (IC), digital interface ICs, Class D digital amplifier controllers and power stages and audio DSPs. Its products are used in consumer applications, including smartphones, tablet personal computers (PCs), audio/video receivers, portable media players, soundbars, complete home theater systems, set-top boxes, gaming devices, sound cards and digital televisions (TVs). The Company offers applications for products within professional markets include digital mixing consoles, multitrack digital recorders and effects processors. Its applications for products within automotive markets include amplifiers, satellite radio systems and multispeaker car audio systems.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in this stock.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.