Tuesday, March 20, 2007

Metalink Ltd. (MTLK): My portfolio's messiah?

As SIMO continues to rocket higher, mocking me along the way, I'm left with finding another winner that I can stick with, through thick and thin (not too thin of course).

A similar situation took place last summer when Sigma Designs (SIGM) broke out and never looked back. I waited and waited for a pullback but it just never came. It was easier to get over this one because I never actually owned it.

What attracted me to SIGM was its position in IPTV (Internet Protocol TV). It makes chip sets that bring content over the internet to the home. Eventually everyone will have a IPTV box on their HDTV that will bring video on demand, internet, and communications to every room in the home. Very exciting, especially since the fiber optic infrastructure is already in place for the explosion in bandwidth that will be required for the technology to work.

I keep up with SIGM and found this article today about a small Israeli company and a huge deal it just announced with Samsung and STMicroelectronics. Metalink Ltd makes similar chips but better and at a lower cost.

Metalink joins the big league

I suggest you check it out. Also, look at the company's website.

Here are my charts for the company. I don't think it will rocket up like SIGM did, mainly because of the large overhead resistance that exists (check out the date of the IPO). I think there is some serious upside to MTLK and should be added on dips.

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