Advanced Analogic Technologies Inc (AATI)

Company

"Advanced Analogic Technologies Incorporated (AnalogicTech) is a supplier of Total Power Management(TM) semiconductor solutions for mobile consumer electronic devices, such as wireless handsets, notebook and tablet computers, smartphones, digital cameras, wireless LAN, and personal media players. The company focuses its design and marketing efforts on the application-specific power management needs of consumer, communications, and computing applications in these rapidly evolving devices. AnalogicTech also develops and licenses device, process, package, and application-related technology. AnalogicTech is headquartered in Sunnyvale, California, with offices in South Korea, Taiwan, Hong Kong, Macau, Shanghai, Shenzhen, Beijing, Japan, Sweden, UK, and France, as well as a worldwide network of sales representatives and distributors. " (company website)

AATI 6-month chart
AATI 6-month chart

Buy

AATI 1-year chart AATI 1-year chart

AATI was clearly turning around after 2006, and the market correction at the end of February drove the price back down to touch up with the 50-day moving average. AATI quickly started moving back up.

  • Price momentum (PPO) — steady rise since November
  • Trend (ADX) — very strong, and buying pressure (+DI) stayed above selling pressure (-DI) during the correction
  • Money flow (CMF) — has dropped off to a slight outflow
  • Relative strength (RSI) — clear trendline of increasing strength
  • Volume — consistently trading near 400K shares/day

Based on technical analysis, MarketEdge calls AATI a "strong buy" in a "strong upward trend."

Sell

gain Bottom line
24%

I closed my position in AATI to lock in very nice profits. It got a tremendous boost from an in-line earnings report and has been sitting right at the $8 level for a week. There are signs of slight deterioration in the chart: price momentum (PPO) has stabilized; relative strength (RSI) has tapered off slightly; and buying pressure (+DI) has also eased.

At the current level, AATI is 17% ahead of the 50-day moving average, so I think a pullback is likely. If that happens, I can jump back in again for another upswing, if the trend remains strong.