Bearish Analysts Wrong on Texas Instruments

Ah, the lot of the bear is a beautiful lot -- never wrong, always having fun at the bullish optimists, never going down for defeat. For them, every day is a day when the St. Louis Cardinals will face the Boston Red Sox in the World Series, even after they have been eliminated.

Cases in point: two reports yesterday on Texas Instruments (TXN - commentary - Trade Now) from the Joy Luck Bear Club, Christopher Danely from JPMorgan and Alex Gauna from JMP Securities. Both of these gentlemen have fought the good but totally wrong fight against Texas Instruments. After what was a monumentally good quarter for the company, Gauna, who has Texas Instruments as an "underperform" raised his price target dramatically from $16 to $18. That would be totally in keeping with the direction of the earnings (way up), except that the stock's at $23.50.

"Despite the solid results coming amidst a rising tide of better fortunes for the semiconductor industry, we remain concerned over the company's some 23% exposure to wireless handset revenue," Gauna cites as his negativity. Look, regardless of how difficult the transition will be, the idea that it would somehow trump the earnings -- and Texas Instruments beat his estimates by 13% -- well, let's just say that it has been a bad call to worry about the wireless exit impact. But he's not wrong, he's just early!

How about JPMorgan's Danely? In a smug piece entitled, "TI Joins the Beat and Raise Conga Line. Extended Lead Times Worry Us Though," Danely raises his price target to $16. Spot-on! Who knows what the heck he was using before but if you didn't know any better, maybe he was expecting a two-for-one split? Memo to Danely: Don't be cute, a la Conga Line of Beat and Raises, when you have been dead wrong. That's like doing an endzone touchdown dance when you drop the ball! Unsportsmanlike!

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At the time of publication, Cramer had no positions in the stocks mentioned.

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