Topic: How To Invest

Pat: Could I get your advice on Synaptics Inc.? They make touch screen technologies.

Article Excerpt

Synaptics Inc., $34.64, symbol SYNA on Nasdaq (Shares outstanding: 34.3 million; Market cap: $1.2 billion), develops and supplies touch screens and touchpads used in electronic devices, such as notebook and handheld computers, digital-music (or MP3) players and smartphones (mobile phones with added features, such as Internet access). The company uses contract manufacturers to build its products. Synaptics first sold shares to the public at $11 each, and began trading on Nasdaq in January 2002. Synaptics is the market leader in “capacitive” touch screens. These let users operate computers and smartphones by sliding their fingers around, on or over the screen. These sensors work on proximity, and do not have to be directly touched. With older “resistive” screens, users must directly push buttons. The company gets 60% of its revenue from its touch pads for personal computers and 40% from smartphones, though the latter will likely supply most of its future growth. Synaptics’ technology is used in phones such as Research in Motion’s BlackBerry…