 Okay folks, welcome to our technical analysis and fundamental analysis of Corvo. I believe I'm saying that right. If I'm wrong, please leave a comment below. QRVO, the symbol, what we're gonna talk about on this commentary. We're gonna talk about the company, a bit of introduction for those not familiar. We're gonna talk about the fundamentals. We're also gonna segue over and into competitor analysis. Let's put Corvo up against one of its top competitors and see how it stacks up. Then I'm gonna share with you my concerns about the stock. There's not much, but there is one in particular I do wanna talk about. Then we're gonna go over the charts. We're gonna do some technical analysis of QRVO. And then at the end, I'm gonna give you my outlook on the shares. Are they going higher, lower trading sideways? Are they a buy, sell, or hold? We'll cut to the chase at the very end, but before we move on, I'm gonna ask you to smash that like button, leave a comment below, share with a friend, subscribe to the channel. But first, we wanna give a shout out to our sponsor and our sponsor is Trendspider. Don't settle for ordinary trading software folks. It's 2021. You need to be able to automate your grunt work. Most traders that watch my channel, they have day jobs. They don't have time to sit around and do technical analysis. They'll either hire somebody like me to outsource their technical analysis or they'll use a product like Trendspider or a mixture of both. So speed up your analysis, improve your accuracy, reduce costly analytical mistakes, find winning chart setups, and time your trades with precision, with Trendspider. There's a link below, 35% off. Go watch their demo tour. You get a seven day free trial offer. And if you're worried about not understanding what this product does and how it works, you're never left alone. They have Trendspider University or you can reach out to Dan or Jake over at Trendspider and these guys walk you through everything you need to know. Trendspider again, 35% discount code below, seven day free trial offer. All right, let's get through it. Now Corvo is a semiconductor manufacturing stock. It's a big player in the 5G space. So it's got many years of potential earnings growth and using IBD, proprietary IBD ratings for Corvo, composite rating of 98, top tier, earnings per share 94, relative strength, that's the relative strength indicator. It's good, but nearing an overbought level at 76. Let's talk more about the technicals in a moment. The group relative strength rating is A, meaning the group is under accumulation. It is outperforming or they are outperforming the overall market. Now the accumulation distribution rating for QRVO is only a D minus. It wasn't E, it's moving up in the rank. When you take a look at their EPS change last quarter, they saw an increase in earnings per share of 66%. Now when you compare that against their three year growth rate, that's accelerating earnings per share. That's what you wanna see. And it looks as though that growth may continue with an EPS estimate change, percentage change of 50% this year, huge. Annual ROE, which is return on equity. That's a measure of the quality of management. It's 17.4, rock solid. You want to see a stock with double digit ROE to get a good feel for the quality of management that's out the helm. Sales last quarter increased by 26%. Now as you can see here, group leadership, AMKR is the leader, according to IBD in the electronic semiconductor manufacturing group with QRVO number three. So what I wanna do or what I like to do is do a comparison of the fundamentals on a far more granular basis, comparing the stock that we're analyzing versus the top tier leader in the group. So let's do some competitor analysis. Now, if you're a experienced investor, you'll understand that margins in particular, the semiconductor, semiconductor manufacturing industry are by far the most important metric that analysts look at when they're determining which is or is not a high quality stock to upgrade or downgrade. Now, when you take a look at gross profits for Corvo versus AMKR, their net margins are nearly double that, meaning Corvo's versus AMKR. Corvo being 13 spot, zero, one percent versus six pot, seven percent. Gross margins are more than double that of AMKR at 56 spot, four, seven percent versus 25 spot, three, one percent. Now, what I do wanna point out is that their return on equity as reflected here is 11 spot, zero, six percent. That differs from IBD, but keep in mind that IBD is return on equity annualized. This is return on equity through 12, 31, 20. So I'm gonna assume that this is a quarterly ROE. Now, prior to entering a trade, I always like to take a look at the institutional sponsorship of a stock. What is that? That's the number of mutual funds, hedge funds, banks, that own a specific stock. Why is that important? Well, it shows that they have faith in the company and the fact that the shares are not being day traded and that they're owned by institutions reduces the volatility of the stock. It also reduces the probability that you're gonna have a stop loss order prematurely taken out. So in the case of QRVO, we have 85% institutional sponsorship, very, very favorable. Now, there is a slight decline from the prior quarter, a very slight concern, but nothing that would keep me away from buying the shares. Now, another metric that I look for when I am looking at a technology stock in particular is the concentration of revenue from any one particular source. So I did a search because I knew that QRVO had some exposure to Apple. The question was how much exposure? Because if Apple decides they're not gonna use their technology any longer, well, the shares can take a big hit. And all of a sudden that institutional sponsorship, which is great when a stock is going higher becomes the enemy when it begins to move lower because then you get institutional distribution. Now, in this article, which I'll link to down below on seeking alpha, the author kind of downplays the exposure that QRVO has to Apple. His conclusion is here. For QRVO with its lower Apple reliance, Apple's performance helped, but is significantly muted. The company marches after more of the Android market which values technology integration, which brings us to Zach's and their research of QRVO because you always want to validate what you're reading on the internet. You don't know what people's motivations are and I'm not saying the author of the seeking alpha article, purposely downplayed QRVO's earnings related to Apple, but you wanna do your own due diligence. And when you skip to page three of this report under oddly enough risks, a significant portion of QRVO's revenue comes from a handful of customers including Apple and Huawei, that's the Chinese company, which contributed 33% and 10% of its revenues respectively in fiscal 2020. So 33% of QRVO's revenues come from Apple. That is not an insignificant number. That is very, very high. So beware, go into any trade understanding if a company has a heavy reliance on any one individual customer. And in this case here, the risk of Corvo's reliance on Apple is a clear and present concern. That doesn't mean that I wouldn't invest in the company, it just means that I'm gonna keep a very close eye on that relationship. Moving on to the technical analysis of QRVO, we'll be using TrendSpider and their automated technical analysis will begin with a monthly chart. We begin with monthly charts because we wanna do a top-down approach, a multi-time frame approach to our technical analysis. Now the shares hit a low of $67.54 back in March of 2020. What a buying opportunity because the following month, you had a double bottom retest and the shares broke out of this downtrend channel in the month of May. You had a filling of the gap, a retest of the breakout point and ever since then it's been off to the races. Now, fast-forwarding to the month of January, you saw this big wick, shadow, topping tail, call it cupcakes, it doesn't matter. It's a sign of profit taking above. Fast-forward to February, we did move lower. However, we've rallied off the lows of the month but we've also fallen from the highs of the month. So there's a tug of war going on here for the past couple of months at in January, 191, Spot 77, this month, 186, Spot 65. Those are the highs respectively, weekly chart. Now the weekly chart using the heat map technology shows that we have a lot of support down below but I would argue that we have even more support much closer to where we are trading current day and that's at around 163 per share. This is a really great consolidation range and last week, what we did is we did something that was very, very bullish, we broke out. Now I would like to have seen rising volume relative to the prior week, we didn't get that. It was a fairly light volume week, daily chart. You can see here on a daily timeframe, we broke out on Friday above not one resistance level but two and using the raindrop chart technology which is proprietary technology two, Trendspider, we flashed a blue raindrop on the 5th of February. Remember, we were moving lower at that time and for those folks that are familiar with technical analysis and familiar with candlestick charting and if you're not look up the word doji star formation and the definition will be that you may have a trend reversal. So the short-term trend was to the downside until the sixth hit and then we flashed a blue raindrop. That's the same as flashing a doji star formation. Why? It's because raindrop charts are a hybrid of candlestick charting and volume weighted moving average. So while we were down on the day on the sixth using candlestick charting, raindrop charting would have told you that you know what, we may be getting a change in trend here fairly soon. And sure enough, ever since the sixth we've been trending up higher until now, this past Friday we've seen a breakout on the shares. So my conclusion folks is that the shares of Corvo are in a sector that is simply in Fuego. The fundamentals and accelerating earnings per share are top tier in the sector. I am concerned about the company's reliance, roughly 33% of revenues come from Apple. That being said, the technicals meaning the chart are very, very strong on a monthly, weekly and daily timeframe and it appears as though we're gonna get a continuation breakout on the shares. Now I will preface that as I'm recording this I am relatively bearish on the overall stock market but I will share that if we do get a pullback on the overall stock market and the shares of QRVO pullback they will be on our watch list as a buy should the shares get sold off due to an overall market correction. So QRVO long-term buy rating from the contrarian trader. Folks, thanks for joining in. 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