Genesis Microchip Inc. (GNSS)

Company

GNSS 1-year chart GNSS 1-year chart

"Founded in 1987, Genesis Microchip Inc. is the established leading supplier of display image processors in both the flat-panel TV and LCD monitor markets. The world‘s leading television and PC manufacturers rely on Genesis‘s award-winning, patented technologies and display controller solutions to produce visibly better and more vibrant images in their displays. Headquartered in Silicon Valley, California, Genesis operates on a global level to serve customers in their own countries with sales (link to sales page) and support centers in Taipei, Taiwan; Seoul, Korea; Shenzhen, China; Tokyo, Japan and Singapore. In addition to its administrative and development center in the Silicon Valley, the Company also maintains two development sites in Toronto, Canada and Bangalore, India." (company website)

GNSS 6-month chart
GNSS 6-month chart

Buy

It looks like Genesis has finally reached the bottom of its down-cycle, so I decided to augment my position at a lower price.

  • Price momentum (PPO) — increasing since earnings report
  • Relative strength (RSI) — strengthening
  • Trend (ADX) — stabilized just at threshhold (20) with buying pressure (+DI) ticking up and selling pressure (-DI) falling
  • Volume — stable

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

Sell

loss Bottom line
-7%

Until last week I held out hope that Genesis would break out of en emerging symmetrical triangle; instead, it broke down and fell out below it. The 50-day moving average has now turned down. In view of the general deterioration in the chart, I decided to get out while my loss was still less than $1 per share overall.