

FAVOURITES… |
Edinburgh-based Wolfson Microelectronics is an interesting recovery play. Its failure to produce goods on time meant Apple dumped the company in 2009, sparking a raft of profit warnings. However, chief executive Mike Hickey has shifted the company to long life-cycle products rather than high-cost launch versions, a move that has helped slash costs and double output. If it can convince the market that design wins can be retained, the shares could sparkle once more. |
OUTSIDERS… |
ARM licenses its designs to manufacturers and receives royalties on each chip, as well as one-off licence fees. It even pays dividends. Yet, there are question marks over its ability to fend off competition from Intel, particularly in the smart phone arena. While Q1 figures are likely to be strong, and investors must pay for true quality, having more than doubled in a year to trade on a forecast 2010 PE ratio of 35, the shares are too pricey. |
Undercover Columnist says:
