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Thursday Night's Show Highlights:

NXP Semiconductors is profiting through secured elements and NFC! Consider NXPI!

Thursday, August 21, 2014

Note: Jim is on vacation on this week. No Lightning Round or other fresh stock picks. Thank you.
CHANGE NOTICE - Mon./Tues. now shown on Wednesday night's show.
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Jim: quote markDoesn't it seem like you find these things (demonstrating how he uses his magnetic ID keycard to get into CNBC) everywhere? I've got to show my good-looking mug on this ID card every day to get to work. But apparently not everybody is on board.

quote markYou see, on Thursday, an analyst at Goldman Sachs came out with what I regard as a striking condemnation of NXP Semiconductors, NXPI, a company that makes both high-performance chips and standard commodity semiconductor components for all sorts of end markets, like these ID cards. In response, NXPI's stock... it got slammed. Of course, it's Goldman Sachs. It was down as much as 5% intraday, and it closed off 2%.

quote markI think this downgrade, where Goldman cut the stock's rating, from "neutral" to outright "sell," was a huge mistake. And tonight I want to explain why. Now he's (the Goldman Sachs analyst) doubling down on his negativity, and I think this could be a terrific buying opportunity in a stock that rarely gives you this kind of pullback. Thank you, to Goldman. First, you need to understand why this downgrade is wrong, and why NXP Semiconductors deserves to be bought, not sold. This Goldman analyst makes five claims, phrasing each in the form of a question. It's sort of Jeopardy-like. And I think all five arguments fundamentally misrepresent this company. Maybe when you hear his critique, you should play some Jeopardy... "Dumb Research for $100, anyone?" In short, this guy is negative, and he's wrong. The truth is, NXP Semi is riding a couple of big waves. There's the near-fiehld communications business I already mentioned, that I know you're intrigued by. You've got to go look into that. And the company's also a huge player in what's known as the "secured element" market. This is another business that they own. A secured element is a chip that keeps all of your information encrypted, so that only you can access it. And one of the fastest-growing segments here is the EMV chips... that's a standard that you're going to have to get to know... that you may have seen embedded on the front of your credit cards. These chips are a huge help in terms of fraud protection. They're already big in Europe, Canada, Asia and China. The government actually mandates that all credit cards have...

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Read all of Thursday night's show recap »

Lightning RoundTonight's Lighting Round Picks: 

  Canadian Pacific (CP)

Jim: quote markI've got two words for you: not done. Canadian Pacific, not done. I'm going to throw in... it's a two-fer, right here, right now, because I'm in a generous and jovial mood... I'm going to give you Union Pacific to go with Canadian Pacific!

All Lightning Round picks »

  Chevron, Inc. (CVX)

Jim: quote markI did not like Chevron's last quarter. I don't think it's going to go anywhere versus Royal Dutch, which is a much better company right now. I used to like Chevron a lot, but it's Royal Dutch's time.

All Lightning Round picks »

  Yelp, Inc. (YELP)

Jim: quote markI don't care where it's come from, I care where it's going to, and the answer is higher... buy, buy, buy!... I do believe that Yelp will have to struggle to stay independent, given the fact that they have a hammer lock on the Yellow Pages for everything that's in restaurant and hotel. It's a remarkable company.

All Lightning Round picks »

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