Attack of the iPod People
Jocelynn Drake (jdrake@sir-inc.com)
Schaeffers Research
3/17/2005 2:47 PM ET
Synaptics
For a moment, I thought I would stick with those who are riding on the AAPL express. According to Hoover's, Synaptics (SYNA: sentiment, chart, options) designed the popular scroll wheel that controls AAPL's iPod. Overall, the firm develops input products for portable electronic devices including notebook and handheld computers, digital music players, and web-enabled phones. The company's TouchPad and TouchStyk systems control a computer's cursor, much like a mouse does for desktop PCs. Furthermore, its QuickStroke software recognizes Chinese characters that are written with a computerized pen.
Technically speaking, the shares have struggled recently, falling below both their short- and intermediate-term trendlines. However, the stock's pullback has left it resting on support at its 20-month moving average, which it has yet to finish a month below.
Sentiment toward the shares is leaning toward the bulls' camp, but it appears there is still ample room for traders to jump on this security. The equity's Schaeffer's put/call open interest ratio (SOIR) of 0.48 sits near the middle of its annual range with a percentile rank of 54. On the other hand, short interest shot 68 percent higher in February to 3.5 million shares. Not only does this spike mark a new annual high, but it is also more than 14 percent of the security's total float. Wall Street has yet to really jump on this stock, as just two analysts follow SYNA (with one "buy" and one "hold"). The equity could see additional upside as more brokerage firms initiate coverage of the stock.
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