Monthly Cash Machine Newsletter, Sunday, 01/23/2005 11:43:56 AM ET
HAVING TROUBLE PRINTING?
SYNA - Synaptics $36.81
Synaptics (NASDAQ:SYNA) is a global developer and supplier
of custom-designed user interface solutions for notebook
computers. The company's original equipment manufacturer
customers include a number of large personal computer makers.
Synaptics supplies its OEM customers mainly through contract
manufacturers, which take delivery of its products and pay
the company directly for the OEMs. These manufacturers
include Arima, Compal, Elitegroup Computers, Foxconn,
Inventec and Shanghai Yi Hsin.
Shares of SYNA soared Friday after the maker of electronic
touchpad technology said second-quarter profit more than
doubled over a year ago, due to strong sales of digital music
players. Revenue rose 65% to $56.5 million and the company
also said it was confident about prospects for the current
quarter due to increased sales in the digital music market.
From a technicals-only standpoint, the heavy-volume rally
suggests a large "bullish" contingent for this unique stock
and with recent buying support near the sold (put) strike
price, our position should remain comfortably profitable for
for the next four weeks.
PLAY (conservative - bullish/credit spread):
BUY PUT FEB-25.00 QYG-NE OI=251 ASK=$0.10
SELL PUT FEB-30.00 QYG-NF OI=229 BID=$0.50
INITIAL "NET-CREDIT" TARGET = $0.45-$0.50
POTENTIAL PROFIT (X 5 contracts) = $225
RETURN ON INVESTMENT (max) = 9%
COST BASIS = $29.55
LOSS-LIMIT/EXIT POINT =$31.00-$31.75