Ready for the Apple iPhone 6? Is Your Portfolio?

Let’s talk about Synaptics (NASDAQ:SYNA).

I’ve mentioned this company before, it is number one in touch and fingerprint ID. Its recent acquisition of Renesas SP Drivers Inc. makes them number one in integrated circuits for LCD technology. The deal will immediately increase the company's addressable market by 150%. It also will strengthen business relationships the company already has, and be immediately accretive to non-GAAP earnings.

Here's the backdrop: Synaptics sells touchscreen chips to Samsung, and used to do business with Apple (NASDAQ:AAPL). And Renesas is the sole display driver chip maker for iPhones. Not only does this bring Synaptics back into the Apple universe, but a chip merging the best strengths of the two companies would be huge.

In the most recent quarter, the company posted record revenue -- it erupted 43% for the full year, 37% for the quarter year-over-year. The real big deal was mobile, making up 77% of the business. Management announced a $200 million share buyback.

It’s a former high flyer, the wings were clipped, but it’s starting to come on really nice and strong. Because of volatility, it has higher-than-average risk, and may be why 38% of the float is short. Wall Street is betting big time against this. I think those shorts are making a mistake.

The shares aren't expensive, considering the 0.80 PEG and even forward PE of 14. It’s the second time I mentioned it, and it’s gone up a bit. North of $80, that’s where I think we are going to get a sure squeeze. My target before was $93, but now I'm starting to lean to this possibly being a $100 stock.

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