Buy This Speculative Growth Stock on a Pullback to $5.50

by Sam Collins | April 11, 2014 1:03 am

Pixelworks (PXLW[1]) — This company designs, develops and markets video and pixel-processing semiconductors and software for high-end digital video applications. The company reported Q4 earnings on Feb. 6 of $0.05 per share, compared with a net loss of $0.15 a year ago, but missed estimates by a penny.

I first covered this speculative small-cap growth stock on Feb. 20[2], at just over $5, based on positive technical analysis from our Profit Scanner[3] tool. Without it, I probably would have overlooked the bullish continuation diamonds shown on the chart.

The stock popped to a 52-week high of $9.05 on March 6, but then succumbed to high-volume profit-taking, closing last week at $5.06. On Wednesday, it jumped from $5.22 to $6.01, and on Thursday, fell to $5.56 on a broad market sell-off. PXLW has closed the huge gap opened in March — a positive.

This is a highly speculative investment and not suitable for investors with limited resources. But it is under accumulation and still considered a “buy” by our Profit Scanner[3] system. PXLW should be bought under $5.50 with a target of $7.50-plus.

PXLW Chart
Click to Enlarge

Chart Key[4]

  1. PXLW:
  2. on Feb. 20:
  3. Profit Scanner:
  4. [Image]:

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