Virage Logic (VIRL)

Company

"Virage Logic is a leading provider of semiconductor intellectual property (IP) for the design of complex integrated circuits. The company's highly differentiated product portfolio includes embedded SRAMs, embedded NVMs, embedded test and repair, logic libraries, memory development software and DDR memory controller subsystems. As the industry's trusted semiconductor IP partner, foundries, IDMs and fabless customers rely on Virage Logic to achieve higher performance, lower power, higher density and optimal yield, as well as shorten time-to-market and time-to-volume." (company website)

virl(4-1)
VIRL 4-month chart
virl(4-1)_1yr
VIRL 1-year chart

Sell short

24 December 2009. Sell short 500 @ $5.25

Virage Logic peaked in October and has been trending down since then, now trading below the 50-day moving average, which is falling. It has fallen out of the developing triangle, and failed this week to break back above the 50-day MA. Since a disappointing earnings report in early November, each successive peak has been lower than the one before it. Monday of this week was a "deliberation day" wherein VIRL traded in an 80¢ range, but ended the day where it started. This is now the third consecutive day of declines.

  • Percentage price oscillator (PPO) — kissed the signal line but is turning down again
  • Volume — declining

Based on technical analysis, MarketEdge calls VIRL an "avoid" in a "weak downward trend."

Buy to cover

gain Bottom line
-11%

4 January 2010. Buy to cover 500 @ $5.90.

Ouch! Not exactly how I wanted to start the year. Virage has been climbing but with almost no volume, definitely moving against My Expectations. In today's early euphoria, the price jumped again — again on miniscule volume — and I had to bail out. The stop-loss order, being on the Nasdaq was triggered by the bid, rather than the last price, and there was a big gap between bid and offer. End result — I took an even bigger loss.