Semi-Good or Good Semi?
|Written by GSCR Staff|
|Tuesday, 02 April 2013 09:05|
There was some selling in the market yesterday as 2Q13 began, and buying has returned today. Since this is a semi- upward day, we will take a look at a new stock in one of our favorite small cap sectors, semiconductors.
RF Micro Devices, Inc. (NASDAQ – RFMD - $5.19) is up 18% since the start of 2013 trading on heavy average daily volume of about 6 million shares per day. The stock is undergoing some serious accumulation, and the chart analysis remains very bullish, particularly our favorites EMA and MACD.
The Company designs, develops, manufactures, and markets radio frequency (RF) components and compound semiconductor technologies primarily in the United States and Asia. Its products are targeted at the 4G LTE mobile smartphones, wireless infrastructure, wireless local area networks, cable television /broadband, Smart Energy/advanced metering infrastructure, and aerospace and defense markets.
RF Micro Devices recent ‘big deals’ include becoming a component supplier for the iPhone 5 and the Samsung Galaxy S4, which should aid in revenue growth this year. More important, EPS for the March 2014 year is expected to double from FY13.
All these factors considered, we think the stock can reach $7.00 sometime this quarter.
Have a great day!
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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