Silicon Motion Technology a 'buy' despite higher-than-average risk?

FBN's Charles Payne, Divine Capital CEO Dani Hughes and Penn Financial Group founder Matt McCall on the outlook for Silicon Motion Technology.

This article is part of the series

Here’s a ‘Fabulous’ Semi-Conductor Play

By Payne's Picks FOXBusiness

Let’s talk about Silicon Motion Technology Corp. (SIMO).

Continue Reading Below

This may be a higher-than-average-risk stock. They’re in a couple spaces that I love. You know, I love the RF Space (radio frequency), they have done extremely well there. They do a lot of embedded storage. In fact, of all your non-Apple smart phones – their products are in the top ten brands.

I think that’s what’s going to continue to drive their sales, their solid state controls, their micro controller controls. It’s a fabulous semi-conductor play. I don’t like the fab plays, but this a fabulous play.

Maybe the NAND flash could be a problem after the SanDisk issue. But here I like the stock, and I think it gets back and forms a double top. So, I’m looking at $31 from where it is right now. That would be a pretty nice percentage gain.

I would suggest $25, below there is where we would consider a stop loss. But I like this stock a lot, and I think this a pull back to buy it on.

DISCLOSURES

Continue Reading Below

Silicon Motion Technology Corp. (SIMO)

Owns

Family Owns

Firm Owns

Investment
Banking

CHARLES N N Y N
MATT N N N N
DANI N N N N
OLIVER N N N N
JEFF N N N N

 

What do you think?

Click the button below to comment on this article.