|Written by GSCR Staff|
|Tuesday, 10 September 2013 00:15|
In Monday’s Goldman Guide we offered seven key insights to playing the market in September. One of our points was the discussion centered around stock indices and weighting, and the fact that if a narrow segment of tech is weighted heavily in the NASDAQ Composite, and that group is on fire, it does not necessarily translate to all or even related tech stocks. Our play is to follow the volume leaders.
Today we are highlighting 3 picks, two old ones previously featured in the Market Monitor and a new one. We set our screeners to filter out small cap tech stocks that have averaged over 750,000 on the volume side.
Here we go:
Rambus, Inc. (NASDAQ – RMBS - $8.94)
We featured this stock back in early March and it is up nicely, nearly 66% as of the close of the market yesterday. The stock has traded on average over a million shares over the last three months and from a technical analysis perspective the 5-day and 20-day DMA are very bullish. As a refresher, Rambus plays in the LED space, which continues to remain on fire, and is expected to get into the black in 2014. A nice pop to $10 is possible by October 1.
RF Micro Devices (NASDAQ – RFMD - $5.38)
RF Micro Devices is a fairly mature company in the small cap space with a diverse offering line with several products used in smart phones and other telecommunications devices. RFMD has traded a little sideways since we highlighted back in early April, up just 3.85%. Again the momentum and technical analysis are very bullish, as the stock is trading nearly 4.5 million shares per session, and the 5-day, 20-day, and 50-day DMA are very bullish respectively. RFMD could hit $6.25 by October 1.
Applied Micro Circuits Corporation (NASDAQ – AMCC - $12.26)
This is a new pick with the application of our September volume formula. AMCC is averaging over 900,000 trades per session over the last three months as the stock has been accumulated. The technical analysis is also showing a very bullish signal all the way to the 50-day DMA. The company manufactures connectivity products for the next generation of data centers and network hubs. Even in the slow growth economy many large companies are spending money upgrading systems to keep up with ‘the cloud’. AMCC is expected to get into the black with earnings at $0.12 per share for FY14 (ending March 31 2014) and spike up to $0.46 per share in FY15. AMCC has room to get to $13.25 by October 1.
Keep on riding the train.
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.
This Market Monitor blog was prepared for informational purposes only. Goldman Small Cap Research, (a division of Two Triangle Consulting Group, LLC) produces research via two formats: Goldman Select Research, which typically highlights small cap companies, and Goldman Opportunity Research, which features micro cap companies in a sponsored research format. Thus, the Select product reflects the Firm’s internally generated stock ideas while the Opportunity product reflects sponsored research reports.
It is important to note that while we may track performance separately, we utilize the same coverage criteria in determining coverage of all stocks in both research formats. Please view the company’s individual disclosures for each engagement, which can be found in each company-specific report. All information contained in this blog, newsletter and in our reports were provided by the Companies or generated from our own due diligence. Our analysts are responsible only to the public, and are paid in advance to eliminate pecuniary interests, retain editorial control, and ensure independence. Analysts are compensated on a per report basis and not on the basis of his/her recommendations.
The information used and statements of fact made have been obtained from sources considered reliable but we neither guarantee nor represent the completeness or accuracy. Goldman Small Cap Research did not make an independent investigation or inquiry as to the accuracy of any information provided by the Company, or other firms. Goldman Small Cap Research relied solely upon information provided by the Company through its filings, press releases, presentations, and through its own internal due diligence for accuracy and completeness. Such information and the opinions expressed are subject to change without notice. A Goldman Small Cap Research blog, report, note, or newsletter is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed.
Goldman Small Cap Research is not affiliated in any way with Goldman Sachs & Co.
This blog does not take into account the investment objectives, financial situation, or particular needs of any particular person. This blog does not provide all information material to an investor’s decision about whether or not to make any investment. Any discussion of risks in this presentation is not a disclosure of all risks or a complete discussion of the risks mentioned. Neither Goldman Small Cap Research, nor its parent, is registered as a securities broker-dealer or an investment adviser with FINRA or with any state securities regulatory authority.
ALL INFORMATION IN THIS BLOG, REPORT OR NEWSLETTER IS PROVIDED “AS IS” WITHOUT WARRANTIES, EXPRESSED OR IMPLIED, OR REPRESENTATIONS OF ANY KIND. TO THE FULLEST EXTENT PERMISSIBLE UNDER APPLICABLE LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE FOR THE QUALITY, ACCURACY, COMPLETENESS, RELIABILITY OR TIMELINESS OF THIS INFORMATION, OR FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES THAT MAY ARISE OUT OF THE USE OF THIS INFORMATION BY YOU OR ANYONE ELSE (INCLUDING, BUT NOT LIMITED TO, LOST PROFITS, LOSS OF OPPORTUNITIES, TRADING LOSSES, AND DAMAGES THAT MAY RESULT FROM ANY INACCURACY OR INCOMPLETENESS OF THIS INFORMATION). TO THE FULLEST EXTENT PERMITTED BY LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE TO YOU OR ANYONE ELSE UNDER ANY TORT, CONTRACT, NEGLIGENCE, STRICT LIABILITY, PRODUCTS LIABILITY, OR OTHER THEORY WITH RESPECT TO THIS PRESENTATION OF INFORMATION.
For more information, visit our Disclaimer: www.goldmanresearch.com