The list of industries in freefall during this recession must include the semiconductor business. Emcore Corporation (EMKR) provides compound semiconductor-based components and subsystems for the broadband, fiber optic, satellite, and terrestrial solar power markets. Most of their customers rolled up their tent and went home during this recession. However, it appears that the news is getting better for the industry as a whole and EMKR in particular…prices are stabilizing and demand has begun to pick up slightly.
EMKR has been posting some horrific quarterly numbers and I don’t see a huge turnaround coming next quarter. However, the balance sheet is strong enough to keep the company afloat for now. No long-term debt helps, but EMKR needs to keep cutting costs and hoping that the market comes back for their long term viability.
This is strictly a small cap, penny stock chart play. EMKR is coming off the mat and may have a run in it.
All of the indicators are turning positive for EMKR. The stock is under accumulation once again, the MACD is crossing the signal line (albeit still below the zero line), and the stock is bouncing off of the support level of $1.00.
Put it on your radar list and watch how it trades today. It might be a good short term play. Put a tight stop on it in case it tanks.
Good luck and good trading.
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