The Browns and Bills of Our Tech Picks

Written by GSCR Staff   
Thursday, 03 October 2013 07:04

Tonight the NFL week kicks off with two downtrodden franchises in the spotlight game for Thursday night, another feather in the cap for critics of Thursday night NFL football.

 

The Buffalo Bills have not been relevant since the early 90’s and Jim Kelly, going to, but losing 4 Super Bowls. The Cleveland Browns’ championship days were in the 50’s and 60’s, but the team was a perennial play-off team with the cardiac kids of QB Brian Sipe of the 70’s through QB Bernie Kosar into the early 90’s. The point is, as we mentioned in the Guide this week, there is no guarantee of future success based on past dynasties in today’s NFL, just as there is no guarantee that past winners will be future winners in today’s market.

For today we re-examined two of our downtrodden tech picks (Our Browns and Bills) in an effort to ride the momentum in the sector. Hopefully, no one minds if we compare the teams of two rust belt cities to the technology sector.

Glu Mobile Inc, (NASDAQ – GLUU - $2.80) +1.82%

In relative terms GLUU has been a dog. Pardon the pun related to the Browns. However, the charts indicate a very bullish signal with 5-day to 50-day DMA. On the down side the company is not expected to get above the $0 level from an EPS perspective in 2014, but top line growth is forecast to increase by 20%. GLUU is up nearly 30% over the last few weeks with some huge volume days where 4 to 6 million shares were traded. Finally, the Company released Deer Hunter 14© in September, which set a single day record for revenue and downloads for the firm, and seems to be a hit in the market as a virtual hunting game with interactive features. We say hold on to this one.

Amkor Technology, Inc. (NASDAQ – AMKR - $4.39) -1.13%

Again, from a technical perspective AMKR has reversed its DMA signal to very bullish in the long, intermediate, and short term DMA. Additionally, 2014 earnings per share puts the FY P/E just under 7 as the Company is forecast to go from the red to the black related to EPS. The share price has oscillated from the $4.00 to the $4.50 level on heavy trading approaching 850,000 shares traded per day on average over the last three months. We think a breakout is coming. Keep or buy this one.

Have a great day and Go Browns!

Disclosure: Goldman Small Cap Research analysts are neither long nor short these shares but may elect to purchase the stock within the next 48 hours.

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