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Technology Stocks : The New (Profitable) Ramtron

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From: jimtracker110/14/2010 12:44:08 PM
   of 647
 
Ramtron International Corp. Jumps to 52-Week High; RMTR, SNDK, ISSI
October 13, 2010 03:30

Ramtron International Corp. (RMTR) [Chart - Analysis - News] established a new 52-week high yesterday at $4.11. Clearly investors are enthusiastic about the firm's prospects. The rally was accompanied by higher than average volume, which adds to the momentum behind yesterday's move.
The question is, can RMTR continue moving higher? The stock has gained 19.71% during the past month, has a price-to-book value of 3.3 and a PEG ratio of 0.

Studies have shown that investors who buy stocks after hitting yearly highs during a bull market achieve higher average returns that the broad market indexes. This is a great example of the trader adage that "the trend is your friend." However, these historical results are based on large averages---and some bullish momentum in the market. It is much more difficult to say whether RMTR, as a single stock, will continue to hit new highs. But for the time being, things look promising.

RMTR competes in the Semiconductor- Memory Chips industry with SanDisk Corp. (SNDK) [Chart - Analysis - News]---the largest firm in the industry group---and Integrated Silicon Solution Inc. (ISSI) [Chart - Analysis - News], who have returned 3.3% and 10.74% during the past month, respectively. RMTR is likely to be sensitive to its competitors so future weakness in the Semiconductor- Memory Chips industry could be an early warning sign that things might be turning around.

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