Trading Apple's Suppliers (BRCM, QCOM, SWKS, OVTI, NEON)
Earlier on CNBC, Stephanie Link of TheStreet.com and David Garrity of GVA touched on the prospect of trading Apple's (NASDAQ: AAPL) suppliers. While the new iPad's suppliers are currently unknown, it may be too late to trade the stocks when the device is finally taken apart next week.
Link noted that Apple has a long standing relationship with supplier with Broadcom (NASDAQ: BRCM). She was nervous about Cirrus Logic (NASDAQ: CRUS), which she noted was extremely dependent upon Apple for revenue. Link stated she would sell Cirrus into strength and buy Broadcom, Qualcomm (NYSE: QCOM) and Skyworks (NASDAQ: SWKS).
Garrity liked Neonode (NASDAQ: NEON). Garrity stated that Neonode was not a current supplier of Apple, but could become one in the future, given the company's entrance into the market of gesture interfaces. He also liked OmniVision (NASDAQ: OVTI) as a supplier for Apple's cameras.
In terms of Apple itself, Garrity would buy Apple as the new iPad would continue to increase the size of Apple's ecosystem.
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