Sample Newsletter: Featured Stock of the Week


FEATURED STOCK OF THE WEEK (5/11/10):  (click on symbol for chart from stockcharts.com).


MSPD  - Mindspeed Technologies (R=6, 9.35) Closing price on 05/10
High Growth Stocks (HGS) Industry: Semiconductor - Manufacturing
Estimates: (2009 -.48); 2010: 0.56, 2011: 0.78
Short Interest: 3.9days(Shortsqueeze.com) < 3-5 days, ok, above 5 is a red flag, be careful.
PE: 93 trailing and 12.69 forward  vs 43.3 (HGS) for the industry vs 11.2 PE for S&P 500.
Average Daily Volume: 480K and 52 week high: 11.13;
PEG: 1.81 ( Insider Trading: Some selling; Major Inst: Buying; Inst & MF ownership 58 %;  float 24M, additional information @ Yahoo
RSI: 58.31 > 50 and a decent looking chart; recent low was  7.00 - (see stockcharts.com); (RSI over 70 can be overbought)

Support: 9/50 DMA: 9.79/8.68 with 8.60 SELL (mental stop – review at end of day)
 
Pull back buy: 9.50 some support; Reported 0.14 earnings (2Q)  vs  -0.25 on 04/26.

Calculation for Target (2010): 0.56 x 43.3 = 24.2 fair value near term. (Stockline lists 13.00 for 6 months and 15.18 for 1 year)

Profile: designs, develops, and sells semiconductor networking solutions for communications applications in enterprise, broadband access, metropolitan, and wide-area networks (WAN). It provides analog transmission devices, which include laser drivers, transimpedance amplifiers, post amplifiers, clock and data recovery circuits, serializers/deserializers, video reclockers, cable drivers, and line equalizers; and switching products.  

Disclaimer and info: I bought some in April to watch and snagged more at 7.50 on market drop last week and added more in model at 8.60 on 5/7. It was a spinoff from CNXT a few years ago and looks to be doing much better than the home company. A move over 10 and it might make a run at the recent high at 11.13. We have 600 sh of MSPD in the model.