MicroStockProfit » Semiconductors

Sometimes, it’s all about the chart: AMKR

Editor — Tue, 03 Nov 2009 13:50:47 +0000

I’m not sure why AMKR has dropped so far, so fast. It appears, on its face, that the company is doing the right things and the news has been mostly good. Doesn’t matter…persistent selling has knocked off 50% of the company stock price since its most recent high.

Here is the chart, so you can see what I am talking about:

It is a large company (definitely not a penny stock) that is involved in the semiconductor business and has had some “choppy” financial results lately. What I mean by that is that it has posted both losses and profits on different quarters in 2009. The balance sheet is reasonably strong….good cash and liquidity ratios although debt is high (over $1.5 Billion). Nothing to worry about there.

Why the drop? I took a quick peek and couldn’t find anything. I will do further research later, but for now I wanted to bring this company to my readers attention. I think that it has a very attractive chart, is sitting on or near strong support, it is in an industry (semiconductors) that seems to be getting “off the mat” and has the financial strength to weather this financial storm we are in.

It did bounce off support yesterday….I would suggest watching to see if it re-touches support or continues its bounce.

Enjoy your day in the market!

EMKR – Finally a Turnaround?

Editor — Wed, 09 Sep 2009 13:39:45 +0000

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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Stock Alert for EMCORE Corp. (EMKR)

The need for Speed: Vitesse Semiconductors (VTSS)

Editor — Mon, 31 Aug 2009 07:27:03 +0000

I did not know (until I looked it up) that the word Vitesse means “speed”…as in going fast. It is mainly a European word, but there have been a number of European sports cars that have had the name “Vitesse” in their names.

Interesting trivia about today’s blog subject, Vitesse Semiconductors (VTSS), and I hope indicative of their stock price movement soon. To be honest, Vitesse has not gotten much love lately from the stock market. After releasing their third quarter 2009 update, the stock plummeted from a recent high of 45 cents on August 10th to 25 cents one week later. You can read the report for yourself here. It certainly wasn’t great news, but it was in-line with the general economic conditions that we are experiencing. What impresses me is that the company appears to be making some smart moves in order to ensure the long-term viability of the company: raising cash, paring expenses, selling non-core assets and operations, etc… Another encouraging sign is that 5% owners and insiders own 16% of VTSS and are not selling. I would like to see some insider buying, but at least they are not like rats leaving a sinking ship!

The stock has come back up to 31 cents recently, but has farther to go in my opinion. The chart tells me that the stock is under accumulation again and stock might be turning. Here is the chart:

As you watch this stock, pay attention to the MACD. It appears to be turning bullish. Once it turns and gets above the zero line, it could really run. The thing to remember with the MACD though is that it is a trailing indicator. Watch the RSI and stochastics and monitor the buying activity. If this stock runs back up to its recent high, then that will be a great gain for my readers. The stock has a 52-week high of only 94 cents. Make sure you don’t ride the run too long and keep a tight stop in it in case it doesn’t have enough “speed” to continue its run.

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