Trends, Charts and Exclusive Opinion
Three Tech Plays Leading the Way
THQI: Gamer Will Draw Revenues from Cloud Computing
RTEC: Fab Wafer Maker Benefits from Semiconductor Return
IKAN: Broadband Chipset Maker just what the FCC Wants
First up this morning is S&P SmallCap 600 company THQ Inc., (THQI) http://www.thq.com/ currently trading in the $6.09 range on a 3-Month average daily trading volume of 1.1+ million shares. THQI was trading in the $3 range a year ago; it reached $7 in May and in June of 09, shot up to $9. THQI dropped but in July reached back towards the $9 level. It didn�t hold and fell back to $5 by Sept. THQI did climb back to $7 in Sept but once again, couldn�t hold. It fell back to the $4 range by mid-Dec. THQI then began its current rally and has been advancing in the new year to its current level. THQI has a 52-week high of $9.03 set on 06-11-09 with current trailing twelve month revenues of $871+ million.
THQI publishes interactive games and develops its products for all popular game systems, personal computers and wireless devices. Earlier this month, THQI launched the first standalone expansion to 2009�s Warhammer 40,000: Dawn of War II � Chaos Rising. This is one of the worlds� biggest selling games. THQI is a long-term (1 Yr) �Buy� consideration for me. Here�s why... Revenues. I believe THQI like other gamers are going to begin to show �large� revenues added to their balance sheets from �Cloud Computing� providers like OnLive that deliver lag-free access to g! ames tha t can be played on nearly any personal computer or television. A gamer won�t have to buy a hard copy or an update to be hosted on a PC or a MAC or a wireless device. They can access the game, like Chaos Rising, from anywhere and those revenues will tally up.
THQI 1-Year
----------------------------------------------------------------------
Sign-Up for Free to Receive Future Commentary and
Trading Alerts on THQI, RTEC, and IKAN.
----------------------------------------------------------------------
Next up is S&P SmallCap 600 company Rudolph Technologies Inc., (RTEC) http://www.rudolphtech.com/ currently trading in the $8.33 range on a quarter million shares a day. RTEC was trading in the $3 range a year ago and staged and impressive surge through the beginning of Aug into the $8 range. RTEC moved between $6 and $8 until it found its $7 floor in Nov which it kept through Jan. RTEC jumped in Feb 2010 and has held $8 as its bottom. RTEC has a 52-week high of $9.53 set on 02-22-10 with current trailing twelve month revenues of $78+ million.
This week, RTEC announced a significant distribution alliance that will really open up Europe for its products. RTEC�s �New Market� partner is the John P. Kummer Group who will distribute RTEC�s semiconductor process characterizat! ion equi pment and software for wafer fabs. According to RTEC, �The move was made in anticipation of growing demand as the semiconductor manufacturing industry continues its recovery and manufacturers look for new methods to reduce the cost and optimize the performance of their testing processes�.
RTEC had an okay quarter last go round: posting a loss of $6.1 million, or 20 cents per share, compared with a loss of $245.7 million, or $7.96 per share, in the same period a year earlier. Excluding items, RTEC earned 2 cents per share in the latest quarter. This is up from an adjusted loss of 10 cents per share in the year-ago period. Revenue rose 76% to $28.9 million from $16.4 million. RTEC is a short-term (6 Mo) �Buy� consideration for me. RTEC has two compelling things going for it: The return of the semiconductor industry as a whole and tactically; a new, huge market. In early Feb Piper Jaffray analyst Auguste Gus Richard upgraded the company to "Overweight" from "Neutral" and raised his price target to $12 from $7.25 in a note to clients.
Finally this morning is Ikanos Communications Inc., (IKAN) http://www.ikanos.com/ currently trading in the $2.54 range on 180k shares traded a day. IKAN was trading in the $1.25 range a year ago and began a slow, steady ascent to the $2.50 range by mid-Oct. IKAN cooled off in the fall, dropping to a smidge above $1.50, but has since, with a few corrections, climbed back into its highest range in a year. IKAN has a 52-week high of $2.90 set on 02-22-10 with current trailing twelve month revenues of $130+ million! .
IKAN is a long-term �Buy� consideration for me. Why? First, even near its high, I think IKAN is undervalued and cheap. Second, IKAN develops high performance semiconductor and software products that enable network equipment manufacturers and service providers to deliver broadband to the digital home. After the huge media blitz by the FCC last week about providing broadband access to the majority population of the U.S., IKAN stands to benefit in a big way. A Big Way. Plus IKAN sells its products: earlier this month, German powerhouse AVM bought IKAN�s Fusiv Vx180 communications processor for integration into the AVM most advanced family of multimedia home gateways. In Feb, Internet Telephony, a very prestigious telecom magazine picked the IKAN Velocity broadband DSL chipset as its 09 product of the year.
If you'd like to receive further updates and any changes in our opinions of THQI, RTEC, and IKAN,�be sure to Sign-Up for the SCN Newsletter today! It's FREE.
No comments:
Post a Comment