Stock to Sell #3 – OmniVision Technologies (OVTI)
OmniVision Technologies (NASDAQ:OVTI), a manufacturer of integrated and semiconductor image-sensor devices, is primarily focused on camera phone makers. With sales there declining, the company has fallen on hard times. Despite higher January fiscal quarter earnings, future expectations have been lowered by S&P and Raymond James analysts, and so has the anticipated price-to-earnings (P/E) ratio. According to S&P, “Price pressure and market share erosion are likely.”
On March 1, the stock plummeted through its bullish support line at $14, gapping down on high volume. MACD issued a strong sell signal and insiders have been recent sellers. The July low at $11.82 is the stock’s first level of support. A break there would likely result in a plunge to under $10. Sell OVTI at the market.