Powertech Technology Inc. of Taiwan (which tests, packages, and assembles integrated circuits... including memory products, and provides various kinds of IC package services, according to Bloomberg... Basically a DRAM play.)
IN the RED corner, we have Tom DeMark's TD Sequential (daily) as interpreted by a rank beginner (me.) We've had two Perfected Sell Set-Up 9's (green bar counts) the last of which more or less coincided with the conclusion of a Sell Countdown 13 (red bar counts) and now here we are, closing today at NT$120.5, down 0.4% (with borrow available at 4%):
"A TD Sequential (TM) Sell '13' Countdown was recorded 8 bars back, on 04/11/2008 and is still active... Typically after a TD Sequential (TM) Sell '13' Countdown, the market will respond within 12 price bars."
AND in the BLUE corner... representing 15 brokers with buy recommendations (vs 1 hold and zero sells) we have CLSA (known as Credit Lyonnais once upon a time,) with a buy call issued on April 10th when trading at NT$114.5 with a LT target of NT$136... so far up by 5%... pretty good in under 2 weeks...
... but will it rise a further 13% to the CLSA target or drop 13-25% to hit the DeMark NT$90-105-ish range first?!
Dhruv Vohra says: "Powertech’s strong client relationships and the limited increase of the industry’s memory IC packaging and testing capacity suggests that Powertech will continue outperforming the Dram makers. We have raised our earnings estimates by 8% to factor in the better 1H08 revenue and profit margins. If average selling price pressures ease, there is the potential for even more upside..."Admittedly, CLSA's is a 12 month call (I think) and the TD indicator suggests possible weakness over the next ~4 days (!) so both could easily be right... but that's a minor matter!
(Drum roll, please.)
Let's get ready to rumble!
(Apologies to and help sought from those who know better!)
Stumble It!
Posts
No comments:
Post a Comment