Aehr Test Systems (AEHR)

Company

"Aehr Test Systems is a leading worldwide provider of systems forburning-in and testing DRAMs, flash, and other memory and logic integrated circuits and has an installed base of more than 2,500 systems worldwide. Aehr Test has developed and introduced several innovative products, including the FOX, MTX and MAX systems, and the DiePak® carrier. The FOX system is a full wafer contact test and burn-in system. The MTX system is a massively parallel test system designed to reduce the cost of memory testing by performing both test and burn-in on thousands of devices simultaneously. The MAX system can effectively burn-in and functionally test complex devices, such as digital signal processors, microprocessors, microcontrollers and systems-on-a-chip. The DiePak carrier is a reusable, temporary package that enables IC manufacturers to perform cost-effective final test and burn-in of bare die." (company website)

AEHR 3-month stock chart

Buy

Aehr made a double peak in 2006 and hit bottom just at the end of the year. It has now moved above the 50-day moving average and has stayed there after retesting that support. It is now testing resistance at the 200-day moving average.

  • Price momentum (PPO) — picked up strongly during past three months
  • Trend (ADX) — still strong after buying pressure (+DI) crossed above selling pressure (-DI)
  • Money flow (CMF) — inflow
  • Relative strength (RSI) — neutral again after a brief stint of strength
  • Volume — average is picking up again after a long decline due to several days of much higher-than-normal volume

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

So far I've only been able to buy 200 shares at my bid price -- sellers have been holding firm for several days at their price.

Sell

gain Bottom line
2%

After a week of watching AEHR volume dribble off to almost nothing, I decided to get out while I could. I managed to sell for a profit of 2%, which, in fact, covers the trading costs. In other words, it's a wash.