Long Position on NXPI @ $100.50 on 4/8/2015 (Momentum)

Bullish Flag on NXPINXP Semiconductors N.V. (NXPI) provides high performance mixed signal and standard product solutions for radio frequency (RF), analog, power management, interface, security, and digital processing products worldwide.

The company operates through two segments, High Performance Mixed Signal and Standard Products.

The High Performance Mixed Signal segment offers in-vehicle networking, car passive keyless entry and immobilization, and car radio and car audio amplifiers; lighting drivers; RF solutions, such as silicon tuners and AC-DC power conversion integrated circuits (ICs); and microcontrollers. This segment also develops audio software solutions that enable mobile device manufacturers to produce hand held products.

The Standard Products segment provides standard semiconductor components, such as small signal discretes, power discretes, protection and signal conditioning devices, and standard logic devices. The company also provides ICs and discrete semiconductors. Its products are used in automotive, identification, wireless infrastructure, lighting, industrial, mobile, consumer, and computing applications.

The Dutch company markets its products to various original equipment manufacturers, original design manufacturers, contract manufacturers, and distributors. 

Shares have formed a bullish "flag" after the firm reported strong quarterly results and agreed to acquire Austin, Texas based Freescale Semiconductor (FSL). The Freescale–NXP merger is a cash and stock transaction that will see Freescale Semiconductor (FSL) shareholders receive $6.25 in cash plus 0.3521 shares of NXP Semiconductors (NXPI).

On April 24th, Apple will begin seling its iWatch. The ultramodern watch will be equipped with the NXPI's chip that powers near field communication (NFC). This is the heart of  the Apple Pay. Note that Microsoft will shortly launch its "tap and pay" equivalent to Apple Pay which is rumored to use XNPI's technology. Higher share prices are expected for this stock.

52-Week Trading Range: $53.81 - $108.50

Entry Point: $100.50

Stop Loss: $95.40

Target Price: $110.70

Updates

5/8/2015 10:57:26 AM

NXPI closed at $104.50 after its 30 days expired.

Position closed on 5/8/2015 at price of $104.50 with a 3.98% gain in 30 days.

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