Perimcom Semiconductor (PSEM)

Company

PSEM
PSEM 1-year chart

"Pericom Semiconductor Corporation enables serial connectivity with complete solutions for computing, communications and consumer market segments. Pericom's integrated circuits and SaRonix-eCera frequency control products provide the connectivity, timing and conditioning of high-speed signals required by today's electronic applications." (company website)

PSEM
PSEM 6-month chart

Buy

In December, PSEM reversed a 6-month downtrend and has been moving upward in a channel since then. It got a nice boost from an earnings suprise in early February but was swept back down with the rest of the market. It has recovered to within the channel and at the 50-day moving average.

  • Percentage price oscillator (PPO) — crossing above the signal line
  • Volume — not particularly strong, but had big capitulations during the correction; the shake-out should be nearly complete

Based on technical analysis, MarketEdge calls PSEM a "hold" with "mildly deteriorating conditions" in the chart.

Sell

gain Bottom line
25%

This seems to be the day for profit-taking. When I checked in earlier this morning, PSEM was up over yesterday's close, and I went off to an appointment. When I came back, the price had fallen back, so I decided to take the profits while they were there. This crazy market is no time to pin one's hopes on a bird in the bush.