Looks like we issued this stock pick just in time. On Monday, RF Micro Devices (RFMD) unveiled four new products or technologies at the Mobile World Congress in Barcelona….a 3G transmit system, new location-based services, integrated RF shielding, and the Polaris 3 silver (a radio/phone). With the exception of the Polaris, I don’t really know what all the other stuff is - nor do I care. What I care about is whether the market liked it, which it did. RFMD shares jumped 6.5%.

Personally, I thought four back-to-back press releases was gratuitous. I would have saved some ammo for later. All the same, the fact that they came to the conference with new toys in hand confirms something I mentioned on Thursday when we issued the trade alert…

Yes, the company blew it last quarter. There’s no doubt about it. I don’t know that the next quarter will be much better. But, I have to think a company that has been highly profitable before can become so again.

Not that Monday’s news instantaneously solved all of RF Micro Devices’ woes, but I think it’s a hint they’re thinking in the right terms now.

Remember, we’re not getting married to RFMD. Our target is modestly set at $4.01. We think the company is going to have enough good news in the near future (like above) to stop the bleeding and soothe the pain. None of it is really evidence that all’s right again. If things eventually look better longer-term, we’ll revisit. In the meantime, we got a good jump on this trade.

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