AI
Friday, March 12, 2004 5:09:44 AM
goodbug.....re: BRCM
On my X_DEV chart, the 3 day rule would not apply until price has closed under $38.53 for 3 days (see below). As you can see, BRCM is now sitting on an important support level. A break and hold under $38 could spell trouble for the stock, but the MRI is showing a nice entry here if this support level holds. So the play must be made according to your particular time frame. If longer term, a partial entry here is relatively low risk. If short term (swing or short term full in and out trade), it might be prudent to wait till this semi-panic selling phase has completed (depending on your risk tolerance). High risk takers could enter here but place stops just under $37 or so.
On another note...... the Vector Vest profile of BRCM is not very favorable:
Value: Value is a measure of a stock's current worth. BRCM has a current Value of $6.06 per share. Therefore, it is overvalued compared to its Price of $38.08 per share. Value is computed from forecasted earnings per share, forecasted earnings growth, profitability, interest, and inflation rates. Value increases when earnings, earnings growth rate and profitably increase, and when interest and inflation rates decrease. VectorVest advocates the purchase of undervalued stocks. At some point in time, a stock's Price and Value always will converge.
Here's my list of the best semi's at this time. Note the "Value" column on each play. I personally own AUO, SIMGE, NXTL, ATYT, TXN and CNXT at this time.
On my X_DEV chart, the 3 day rule would not apply until price has closed under $38.53 for 3 days (see below). As you can see, BRCM is now sitting on an important support level. A break and hold under $38 could spell trouble for the stock, but the MRI is showing a nice entry here if this support level holds. So the play must be made according to your particular time frame. If longer term, a partial entry here is relatively low risk. If short term (swing or short term full in and out trade), it might be prudent to wait till this semi-panic selling phase has completed (depending on your risk tolerance). High risk takers could enter here but place stops just under $37 or so.
On another note...... the Vector Vest profile of BRCM is not very favorable:
Value: Value is a measure of a stock's current worth. BRCM has a current Value of $6.06 per share. Therefore, it is overvalued compared to its Price of $38.08 per share. Value is computed from forecasted earnings per share, forecasted earnings growth, profitability, interest, and inflation rates. Value increases when earnings, earnings growth rate and profitably increase, and when interest and inflation rates decrease. VectorVest advocates the purchase of undervalued stocks. At some point in time, a stock's Price and Value always will converge.
Here's my list of the best semi's at this time. Note the "Value" column on each play. I personally own AUO, SIMGE, NXTL, ATYT, TXN and CNXT at this time.
~Mystic One~
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