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Leigh Baldwin & Co.

112 Albany Street, Cazenovia, NY 13035 | Phone: (315) 655-2964 Toll Free: 1-800-659-8044

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Diamonds and Dogs

1/24/19

What chip downturn? Semiconductor company, Xilinx (XLNX) is up 18% to an all-time high following better than expected earnings while revenue rose 33.6% to $800 million, 4% above expectations. Xilinx also raised current earnings estimates by 10% and sales estimates by 5%. Lam Research (LRCX) is jumping 15% and Texas Instruments (TXN) is up 6% on lackluster earnings. At least theses chip companies aren't lowering guidance further. In-line earnings and in-line guidance is now good news.

Canada Goose (GOOS) gets clipped by a downgrade. The trendy winter wear company is down 7% not far from a seven month low after Wells Fargo downgraded the to stock to market perform. The analyst concedes the fundamental story remains intact, but the risk/reward today is not as compelling as it once was as the valuation is going to become more relevant as the brand matures. Even with the stock down 34% in the last two months, the stock still trades for 71 times earnings and 10 times sales. Even with the downgrade, the analyst has a $68 price target which is 37% upside from yesterday's closing price. I hope they had a great fourth quarter because sales will slow in a couple months.

Diamonds and Dogs market commentary is a journal of daily observations on anything that happens to be of interest to our author. Obviously, our primary focus is the stock market and world economic events, but for this page we have no defined topics. We want this page to be dedicated to the interests, concerns, and possibly to the financial gain of our clients and friends. All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.