Sunday, February 04, 2007

MEMC Electronic Materials (WFR) and Silicon Motion Technology (SIMO)

So it is superbowl Sunday and I'm stuck at home writing a research proposal for my boss. Uhg.

As a break, I thought I might write about a couple of buys I made last week. I'm still up on my QID hedge so I feel quite comfortable buying some tech stocks. The first buy was MEMC Electronic Materials (WFR). This is a large-cap company that sells silicon wafers to semiconductor and solar cell companies (silicon wafers are the primary materials in solar cells). I like the chart, breaking out to new highs, but also like the way all of the solar energy companies have been acting. Look at Sunpower Corp. or Suntech Power (STP).

On the fundamental side, check out what Will Gabrielski had to say about WFR last week. I really trust his analysis, mainly because it was Will that opened my eyes to Flotek Industries. He has a tendency to be a little early when it comes to trades, but he is usually right about the overall story.

The second buy I made was Silicon Motion (SIMO), a small-cap semiconductor company that supplies electronics for consumer electronics like mp3 players, cameras, and notebook computers. Simo just broke out of a cup-with-handle chart pattern on massive volume. I love that kind of action.

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