I Should’ve Bought EDA Stocks in Feb 2009

posted in: Chip Design Mag | 0
Excellent Gains

Excellent Gains

What an amazing gain we’ve seen in EDA stock prices in just the past 3 months. Magma (LAVA) doubling in price, then Mentor (MENT) increasing some 50%.

Ironically Synopsys (SNPS) has been reporting the healthiest quarterly reports yet it’s stock price has been steady and under-performing even the NASDAQ average. I expected Synopsys stock to be boosted by reports of quarterly profits and a growing market share.

You could attribute the Magma stock movements as an indicator that it is ready to be acquired.

Mentor is likely to become the new #2 company in EDA revenue this year, surpassing Cadence. It makes sense that Mentor stock is growing faster than Cadence.

Cadence stock is climbing as the company down-sizes and re-focuses under new leadership. Wall street loves to see management taking action to correct past mistakes. Does anybody know what Michael Fister is doing these days?

Do I expect to see EDA stock prices double again in the next 3 months? No, I’m expecting downward corrections to all stocks as we watch Chrysler go bankrupt or get acquired.

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