GOING ALL IN stocks & stock market in 2021. NOT
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Well, guys today I will do a fun yet educational video! I will be talking about the stock market outlook for 2021. I will also talk about why I’m going to be more cash heavy in 2021. Do I think there is going to be a stock market crash? I will talk about all this in this video! I’m also going to give you my opinion on if you are a new to the stock market, should you sell out? or should you even get into the stock market right now.
Hope you enjoy this video where I talk about the stock market and some stock market investing tips. Leave me your opinion in the comment section. Are you going to be more cash heavy or are you throwing every single dollar you have in the stock market? Also let me know if there is a stock to buy now or a stock to watch now.
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Do folks here today in this video I want to share with you a stock that I believe has the potential to to x rather quickly. Okay, this is an iPhone related stock, okay? And no, it’s not Apple iPhone related. They also have many other businesses as well.
But this one is benefiting huge from the iPhone, not just this year, but likely in the future years as well. Okay, and so I want to share really into detail here, why I think the stock could be such a beast, you know, in a very quick amount of time, let’s just put it that way.
And kind of give all the reasons we’ll talk about the risk in this stock, okay, as well as the reward potential in this stock and why this stock could absolutely be a beast. Okay, so I hope you guys enjoy this.
As always, don’t forget to smash, we got a whiteboard video for you here today. I do appreciate it. You want to join stock hub, it’s linked in the description, it’s absolutely free to join in there as the best and biggest free discord chat in the world if you want to try to apply for my private stock group that’s linked in the description as well. Okay, so the stock I’m telling you about here today, it’s under a $5 billion market cap came in why I’m bringing the stock up.
It’s got its it’s really an interesting point right now. Okay, because this stock fell from it was over $100 a share, it fell to around $80 ish per share on what I call sandbagging the next quarter’s numbers, okay. Now, here’s why I think the company sandbag next quarters numbers, okay.
The previous CEO, actually, you know, just stepped down from the company not from like the company as a whole, he just went to executive chairman role, okay. He stepped out from being CEO, he had been CEO of this company for like, oh, probably about 11 years or so one of the best, you know, 11 or 12 years, one of the best CEOs I’ve ever seen, phenomenal CEO grew the stock from like a $5 stock into where it is today. Okay, guy did an amazing job. But now he wants to just focus on being executive chairman of the company.
And so this is going to be the first real quarter that the new CEOs in place. Okay. So last thing you want to do when you’re got a brand new CEO coming in is have them have huge expectations. And then maybe you miss those expectations, because you maybe didn’t get enough orders in or something like that.
So what I think happened here is I think they’re honestly sandbagging numbers, they’re going to come in with a huge beat next quarter, and you get the new CEO off to the right start because like I said, the worst thing for wall street is like you got a brand new CEO coming in, and you miss numbers.
All of a sudden, you already have trust issues with the analyst community and things like that. You come in as a brand new CEO and you destroy numbers. You look really good. Okay, that’s Wall Street one
That stock market went to one from an executive role. Okay, so that’s what happened there in the stocks falling quite considerably. And I’m looking at the stock and I’m saying, This is pretty tasty. Okay. Now, this company has four chips, okay, for semiconductor chips, and the newest iPhone.
So if you didn’t know, and if you’re not like educated on like, how an iPhone is built, or any any phone out there, okay, or any electronics device, all right, essentially, there’s a whole bunch of semiconductor chips that go inside there.
Okay, so I know your little teeny iPhone that’s like, you know, this thin, there’s like a ton of chips from a ton of different companies out there, okay, including companies like Qualcomm, and another company, like I own sky work solutions and Corvo in Texas Instruments and so many different semiconductor companies as well as Apple’s own chips in that iPhone as well. Okay, and this company has four chips in there, they have the smart codec, which is what all your audio and voice goes through. This is a needs based chip.
And by the way, everything in an iPhone has a needs based chip at the end of the day, but that’s what all the audio goes through. Okay, then on top of that, they have three audio amplifiers in there which obviously makes your voice loud coming out of the device as well.
Okay, and so they afford chips in those latest iPhones, you can actually see the tear downs that’s like publicly available information on like, I fix it if you type into Google like iPhone 12 tear down you can see like all the different chips that are in the latest iPhones. Okay, and iPhone is selling insanely well.
I mean, insanely well. Okay, this will be in my opinion, the strongest year for iPhone sales 2021 by far and away ever in, in Apple’s history. And you know what, next year could end up beating those numbers because a lot of people as far as this whole, you know, 5g bandwagon, everybody jumping on, you know.
You have the early adopters this generation, but actually the real big ones are usually the second and third generations, because a lot of people have been looking at it this year and like, well, there’s still not a lot of 5g towers around me and things like that.
Oh, wait till next year or wait till the year after. Okay. So wait to see the iPhone numbers, not just this year, but next year in the following year, okay, because that’s just usually how it is. It happened with 3g, it happened with 4g, as well. Okay, the cycles just get bigger and bigger as time kind of rolls on. Okay. And so iPhones are just selling like hotcakes, right?
Okay. The company has almost $700 million in cash. But here’s the thing. It’s not just that it has that much dang cash around, okay. They also have 200 million plus dollars in accounts receivable. And I think it’s almost 250 mil if I recall, and accounts receivable in a very small amount in accounts payable compared to that.
So cash balance is going to go weigh up, and the company’s gonna have like the super profitable next quarter as well as the rest of this year, okay. And the company has, you know, pretty much no debt on its balance sheet.
And then they got a 750, or excuse me, not 750 or $350 million buyback, they just announced, okay, so they’re going to be able to take a lot of shares off the market, would you take a bunch of shares off the market, and as well as you like, your net income continues to increase, that helps you epcs out massively, which makes your business look even more and more profitable, because you’re buying back those shares.
And you’re expiring them, okay, so for a company like this, they’re in a huge position of power when it comes to their financials. Okay, they just have a financial fortress balance sheet. And, you know, don’t be surprised if at some point over the next year, so this company gets to over a billion dollars in cash sitting around.
Remember, this is not like some huge company, like that’s ridiculous cash to have around. Okay, that allows you to acquire companies that allows you to save for a rainy day, it allows you to do things like a big buyback so many different things. Okay, this company has huge strength in anything that’s ultra low power, small and thin devices.
And if you think about all the devices in the world, what is what is happening with them all, they’re all pretty much getting smaller and smaller, like how do we make it thinner and thinner, bigger screens, okay, so if it’s a bigger screen, you need even more power. So you need ultra low power and all your other chips.
And this company does an amazing job like that is their strength, okay, so all these little small devices that you might be wearing on you, or you know, different things, right, including your phone, like it is super, super important to be ultra low power, you have to have amazing tech behind your chips. But also ultra low power is what these companies are looking for.
They don’t want your chips to be dragging out a bunch of power away from them. Otherwise, it’s gonna make the battery drain so much faster, these different devices, and then you have customers complaining about a my phone only last blah, blah, blah, okay, so this is super, super important.
All right, this company works extremely close with Apple, they have like what I call a white glove service, where they work super close with them custom chips, okay, custom chips, they’re not just like, here’s, here’s a random chip, try to throw it in your device somewhere.
And the reason this is so important, is when your company like this company that gets 80% of their revenues or more from this one cup company, apple, you better be working really close with them, you better be working with their engineers each day. Because then you know, oh, I have I have a safety here, okay, I know,
I’m gonna be in the next generation, because we’re working on this stuff every single day, if you’re just like, Hey, you know, buy my next chip, and you know, throw it in your iPhone and throw it in whatever device, there’s no, like, there’s no working closely together, there’s no sharing technology back and forth. There’s no collaboration there.
And there’s no like, hey, if the if it’s that easy, they can just replace it with some other chip, when it comes to a company like this, they work super close. And that’s super important, especially in the day and age where some folks have seen Apple replaced, you know, like some intel chips and some other big chips that are like big ASP type chips.
Because at the end of the day, like Apple looks at that, and they’re like, well, this company doesn’t provide me, you know, all that much for what we’re paying them, we could do more without them and things like that, for this particular company. You know, it doesn’t really dang make sense for Apple to try to replace them.
Okay. But there’s a risk, obviously, with 80% of the revenues coming from Apple for this company. It’s just because Apple loves to do custom chips, Apple wants the best chips in their phones, they don’t want the same thing that everybody else has access to. And was that doesn’t make apple special, right? So this is super, super important.
Because when you do custom chips, you can do other things with your device. Obviously, iOS, you know, they have they have full access to their software capabilities. So if you want your hardware and your software to be special, you need to have your own custom chips.
And so that’s why apple in this company works super, super close, because it’s just a huge benefit to Apple in the end, okay. Now, this is really, really big. Okay, this is one of the thesis is I haven’t why this stock could end up being a beast in a very quick amount of time. Okay.
And they brought this up on the conference call, they talked about this. They also brought this up in the shareholder letter, and I don’t think anybody’s even paid attention to this. Okay. This company has a power conversion chip in a control. I see. Okay.
And these are supposed to launch they said in the second half of 2021, calendar 2021. Okay, who launches their phones in the second half of 2021? Apple, okay. So we don’t know for sure. Because the company can’t say we’re for sure.
In the next iPhone, this about like their policies, they can’t even directly say Apple, okay, you have to read the actual documents to find out it’s Apple, okay. But here’s the thing. They’re launching these specialized chips with a with a, it says key customer, key customer who’s more of a key customer than Apple, okay, in the second half of 21. Could that be in the next iPhone generation? Here’s the thing.
Here’s the company said these chips are, you know, a big step up when it comes to like ASP s and those sorts of things. So if we think about this for a moment, this could be a game changer.
If it’s Apple, if it’s not Apple, maybe it’s Samsung, okay, because we know Samsung usually comes out with some of their devices in the second Half of the year, okay, second half the year means like, like, kind of moving into full time, somewhere around there. Okay, so, hmm, who is it is a Samsung? Or is it Apple, everybody else is kind of not really a key customer for for this company at the end of the day, so, hmm.
This could be huge. Okay, that’s all I’m gonna say about that this could be huge. I don’t think most analysts are even paying attention this or even seeing this right now. Okay? Keep that in mind. Very, very important Android expansion. This company is expanding into Android. Now. It’s been tough for them over time.
You know why? Because Qualcomm essentially, has almost like a kind of little monopoly situation going in Android, or at least they have historically over the past 10 years or so. Okay? Because like Qualcomm, essentially, they, they sell a ton of different chips. And so what they’ll do is they’ll give you like discounts and like, oh, if you get an audio chip from us, you know, we’ll give you give you a discount if you also get this chip in this chip.
And that’s why you see Qualcomm really dominate in Android, because they’ll give all these different deals. But here’s the thing, that’s fine if you’re competing for low end devices, or let’s call them like cheap phones of some kind, but if you’re trying to compete on the higher end, right, that’s not always going to be the best thing for you. Okay?
If you try because Qualcomm they got a million different things they’re doing right and I own Qualcomm stock, and I love Qualcomm stock. But at the end of the day, Qualcomm’s got a million different things in this company’s You know, this company here, they’re really focused on this stuff.
For real Qualcomm, this is just one little teeny business for them over there as far as audio chips, and those sorts of things. So you know, this company, I think, long term, at least on the high end of the Android market will continue to take market share from Qualcomm.
As far as the high end of the market, like I said, mid and low end, I don’t think so because this company is just going to be hard to compete with Qualcomm when it comes to price, okay, because those just give discounts if you get a ton of other chips.
Okay, now, the company is taking steps to not just become an audio chip maker, which they’re the biggest audio chip company in the world. They’re the dominant company when it comes to audio chips to the audio chip giant, okay. And that really took off for real when they acquired Wolfson out of the UK, like back in probably like 2014.
That was around that time. Okay. But here’s the thing. Okay, this company when you’re talking about haptics, so haptic, so imagine you have a phone or whatever, and it gives you some like feedback, you know, like, like, it vibrates or something like that, okay.
Depending on what device you’re using, that could actually be this company’s audio amplifiers that are giving you that tactile feedback. So when you touch your phone, and if it’s if it’s an iPhone, it’s likely coming from this company’s chips, okay. And they do that actually, through an audio amplifier. It’s pretty amazing technology.
And so when your your phone or something vibrates nowadays, it’s not like, there used to be like a motor moving around in it. Not anymore. That is so like old school technology, a little vibrating motor in it. Now that it’s all done, like digitally through an audio amp.
It’s pretty dang sick stuff. Okay, so haptics, you have that and that’s continued expansion rate, you have power conversion, power conversion. Remember, we talked about a power conversion chip? That is very important coming in the second half of 2021. Okay, you have a control, I see.
Okay, so when you look at some of these new chips coming, you start to do this, and you’ll say, maybe this company isn’t just gonna be an audio chip giant forever, maybe they’re gonna slowly morph into a overall semiconductor chip giant over time.
And then if you’re talking about the company’s Tam, long term, Oh, my gosh, okay, you’re talking about a company right now under a $5 billion market cap, if this company can become an overall semiconductor giant, I mean, you’re talking about 15 2025 $30 billion type market cap over time, if they can successfully move over to that space. Okay.
So you know, that, that just that a huge expansion of Tam when you go from just audio to all these different things, and I’m watching the company kind of slowly do this on the DL. And I don’t know how many other semiconductor companies are really paying attention this. And I think a lot of analysts are asleep at the wheel when it comes to stock and I’m watching all this play out.
I’m like, this company, man. They’re serious when competing, and they have such a dang good relationship with Apple. You know, I’d hate to ever see anything go bad there. But my goodness, they have a good relationship. And so, you know, with some of these companies that you know, just throwing chips around, you might get replaced by custom chips from screws, etc. Over time. Let’s just put it that way. Okay.
maybe this company becomes an overall chip giant over time and long term that expands their Tam. We’ll see what happens with that. But when you talk about all these things, launching Hmm. Okay, now think about this. augmented reality, virtual reality headsets, laptops continuing to get thinner, right? phones continue to get thinner screens are getting bigger and bigger, right? And then you think about small wearables.
These are all strings for this company. Okay, all strings for this company. This company is dominant when it comes to anything that is small and you have to have a big screen that’s taken up a bunch of power. You need ultra low power. And so the whole world is kind of moving in this company’s direction to their exact strengths. Right?
So that’s pretty amazing. I mean, think about, like, you know, if you had, you know, let’s say an Apple Watch hypothetically on you, right? That little Apple Watch, man, there’s so many different chips that go in there in the power on that’s very important. People don’t want to have to be charging their Apple watch every few hours or something like that, right?
That’s just the be ridiculous. So that, you know, in something like that, over time, definitely potential for a company like this to get bigger and bigger, right? You think about things like air pods, all these devices, including phones, and everything else. It’s all about, you know, the end up taking up more power, but this company says, we’re going to take less power from you, but still give you a customized, amazing solution for what you’re trying to do.
Okay, this is a perfect buyout stock, okay. And I think I know a company that could potentially buy them out. Okay. Why is this company super attractive? From a biomechanics standpoint? Okay, well, they got an extremely business model, they have cash loads to the sky, okay. So when you buy this company, and you acquire it, you get all that ridiculous cash, and you get a super profitable business.
You had a company with amazing engineers, or about 1400 or 1500 employees, and many of them are engineers at this company. Amazing. You get a company with a super close relationship, like super close as close as any semiconductor company out there, right? with Apple.
And you think about all these various things, and it’s like, I mean, you know, this is one of the most This is the most attractive company in the entire world in the semiconductor space from a biomechanics standpoint, by a mile, in my personal opinion by a mile. I think sky work solutions should try to buy out cruzi doozy okay. I don’t know if they will, but I would think it would be ingenious, okay. skywalks has a lot of cash around, not just data, okay.
But they could do some sort of merger type situation where, you know, Cirrus Logic shareholders essentially get shares in skyworks solutions. You combine the companies together, and you create a company that could really truly rival Qualcomm long term. Okay.
I think if you put skyworks solutions and cruzi doozy together, I think this company, long term could become the next Qualcomm or maybe even bigger than Qualcomm long term. Okay, just an absolute chip giant sky works is on its way to becoming a chip giant that could potentially somewhat rival Qualcomm as it is long term.
I don’t know if they’ll ever get there. But they’re at least on their way to you know, becoming a big dog with their whole sky phi platform and so many other things we’re doing in 5g, but I’m telling you, you combine these two companies, the profitability is off the charts, the balance sheets ridiculous.
The engineers at these companies are phenomenal. In my goodness, I’m just looking at that. And I’m like, this is the perfect situation, if those two companies got together for real, okay, and so that’s a whole other you know, thing out there, you know, I don’t know if it will happen, we’ll have to see but if it did, it would 100% makes sense.
There’s many other companies that could potentially try to buy out a company like Cirrus Logic, but I’m telling you sky work solutions. Liam Griffin’s watch this video. Hey, man, it’s almost say Hey, man, okay.
The risk obviously, if Apple in this company ever broke up, that would be tremendously bad for this company. But here’s what the company tells us. Okay. Just a few days ago, they said the relationship remains outstanding.
And they’re continuing to work on various products for that company. Okay, that’s straight from the company. So yeah, it’s very unlikely but it always is a risk with this company. So why you can’t go super heavy into a stock like this or why I can’t go super heavy into a stock like this because it is I will What if Apple in them ever broke up okay. It is what it is.
At the same time we look at the upside potential so I’ll be willing to take some sort of risk in the stock Okay, for Pease under 20 on the stock based upon the numbers I’ve ran for this company, silly that just silly when you think about the type of things that are coming for this company. And we got a supercycle and iPhone going on right now. I mean, my goodness, key analyst numbers are going to get absolutely destroyed over the next year or two for this company.
It’ll just have them grow and only like 7% this year revenue. And from the numbers I saw they also only had them growing like 7% next year. I’m like, Wow. This company’s gonna blow those numbers out the water like without question, in my opinion, they’re going to grow like amazing double digits this year, and probably even more amazing double digits next year in my opinion based upon new products they have common and key customers key customers, Kay.
I’m looking at these analysts numbers. I’m like, What are they doing? What are they doing okay,
so needless to say Cirrus Logic cruzi doozy I think the stock is set up in a position to dominate based upon everything. I just ran you through there. And yeah, things could come together. Very fast. I’ve seen this stock, you know, make some pretty rapid rises. In the past, I watched the stock go from $5 to $45, in a matter of Jeez, it was probably like two or three years or something like that, okay.
And then I watch the stock crash down to 16. And I watched it go all the way up to 80. Plus, then we watched it kind of go down again. And you know, Now obviously, it’s in a down situation where it’s in the atheist range. And in my opinion, looking at the type of numbers this company could produce over the next few years, it’s hard for me not to imagine the stock not going back over $100 if not over $150 plus, over just the next couple years alone.
I’m not even talking five years, 10 years down the road. I’m just talking over the next one to two years. Okay, it’s hard for me not to see a situation like that. So very attractive stock, it obviously has its risk because they’re so heavily reliant on Apple, but my goodness, are they in a position of power for the next several years and power?
No pun intended. Okay, hope you guys enjoyed this in depth video. And as always, in this was obviously a more complicated business model. This isn’t like a grocery store or something like that. So a little more complicated business model. You know, before you ever invest in a stock like this, make sure you do in depth research on anything in a semiconductor space because you got to really know this industry inside and out from each product category.
Like you know, you gotta like for me, I’m invested in Qualcomm, I’m invested in sky works and I’m invested in cruzi doozy and cruzi doozy by the way is the stock I’d much rather buy over sky works in Qualcomm.
Even though those two stocks are Bs and will continue to be beast cruzi doozies just the most attractive but they all have different strengths and different things with their business model you have to understand on a very high level to be super confident in these otherwise when they sell off which these stocks can sometimes sell off 10% 15% 20% 25% and very quick amount of time
If you don’t if you’re really like if you’re not really in the know then you’re going to probably sell off it really bad prices with these and then you end up missing out on the upside so I watched it happen with all three of those stocks I watch it happen with Qualcomm watch it happen with Cirrus Logic several times in the past, and I’ve seen it happen with sky work several times in the past.
So hope you guys enjoyed this. As always, thank you for watching and have a great day if you want to play for my private groups linked in the description.