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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