Virage Logic (VIRL)

Company

VIRL 1-year chart VIRL 1-year chart

"Founded in 1996, Virage Logic Corporation rapidly established itself as a technology and market leader in providing advanced embedded memory intellectual property (IP) for the design of complex integrated circuits. Today, as the semiconductor industry's trusted IP partner, the company is a global leader in IP platforms comprising embedded memories, logic, and I/Os, and is pioneering the development of a new class of IP called Silicon Aware IP™. Silicon Aware IP tightly integrates Physical IP (memory, logic and I/Os) with the embedded test, diagnostic, and repair capabilities of Infrastructure IP to help ensure manufacturability and optimized yield at the advanced process nodes. Virage Logic's highly differentiated product portfolio provides higher performance, lower power, higher density and optimal yield to foundries, integrated device manufacturers (IDMs) and fabless customers who develop products for the consumer, communications and networking, hand-held and portable, and computer and graphics markets. The company uses its FirstPass-Silicon™ Characterization Lab for certain products to help ensure high quality, reliable IP across a wide range of foundries and process technologies. The company also prides itself on providing superior customer support and was named the 2006 Customer Service Leader of the Year in the Semiconductor IP Market by Frost & Sullivan. Headquartered in Fremont, California, Virage Logic has R&D, sales and support offices worldwide." (company website)

VIRL 6-month chart
VIRL 6-month chart

Buy

Virage Logic reversed a long downtrend with a low of $6.62 in early May. After a three-week period of consolidation, it has begun moving up and is just breaking the trend line.

  • Price momentum (PPO) — steady increase
  • Relative strength (RSI) — steady increase, now neutral
  • Trend (ADX) — strengthening, with buying pressure (+DI) holding above selling pressure (-DI)
  • Volume — nice volume on the move above $7

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

Sell

gain Bottom line
4%

I decided today to sell VIRL for a small profit rather than hold on. The price jump at the beginning of the week decisively confirmed breaking the trend line and stretched out the upper Bollinger band. However, volume since then has dribbled off and it's having a hard time holding the new price level. If enthusiasm picks up again later I can always jump back in, probably close to the purchase price for this lot.