Stock to Sell #3 – Diodes Inc. (DIOD)
Diodes Inc. (NASDAQ:DIOD) produces semiconductor parts for communications, computing, consumer electronics and automotive markets. In the last two years, both revenues and earnings have dropped. But in Q3 2012, revenues increased 4% on a year-over-year basis.
The stock has rallied from under $14 to over $19 in the last three months. But it is now at a resistance line at about $19.50, and the chances are high that it will have a difficult time punching through that line. Note the low volume on buying versus the higher volume on selling, a bad technical sign.