PMC-Sierra (PMCS)

Company

"PMC-Sierra(TM) is a leading provider of broadband communications and storage semiconductors for metro, access, fiber to the home, wireless infrastructure, storage, laser printers and fiber access gateway equipment. PMC-Sierra offers worldwide technical and sales support, including a network of offices throughout North America, Europe, Israel and Asia. The company is publicly traded on the NASDAQ Stock Market under the PMCS symbol and is included in the S&P 500 Index." (company website)

PMCS 1-year chart
PMCS 1-year chart

Buy

PMCS 2-month chart PMCS 2-month chart

PMC-Sierra reversed a long downtrend in August 2006. The market freefalls at the end of February and beginning of March drove PMCS back below the 50-day moving average, but it has crawled back above that level. In the past week there have been several above-normal-volume up-days.

  • Price momentum (PPO) — picking up since reporting earnings
  • Trend (ADX) — until the market kefuffle ADX was strengthening and buying pressure (+DI) was picking up quickly
  • Money flow (CMF) — slight inflow
  • Relative strength (RSI) — strengthening gradually
  • Volume — recent higher-volume up-days

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

Sell

gain Bottom line
6%

PMCS gapped lower to open today, then bounced around and ended where it started. This followed a dark cloud bearish candlestick formation last Friday. With earnings due out in two days, this seemed like a good time to pull back to the sidelines on PMCS, locking in a small, if respectable profit.