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Speculative Growth Stock Could Rocket Another 30% Higher

PXLW has run almost 34% since my last recommendation and is under accumulation


Pixelworks (PXLW) — This company designs, develops and markets video and pixel-processing semiconductors and software for high-end digital video applications. On May 8, it reported a Q1 loss of $0.04, beating analysts’ estimates of a $0.07 loss. Revenues of $13.5 million also topped estimates of $13.1 million. Consensus estimates are for earnings of $0.14 per share in 2014 and $0.44 in 2015.

I first covered this speculative small-cap growth stock on Feb. 20, when it was trading near $5, based on positive technical analysis from our Profit Scanner tool. The stock popped to a multiyear high of $9.05 on March 6, but then succumbed to high-volume profit-taking and retreated to $4.68 in early May.

PXLW is now under accumulation. It closed the huge gap opened in March — a positive — and reversed from its 200-day moving average on May 8. Since my latest recommendation on May 16, the stock has run almost 34%.

PXLW should be bought under $8 with a trading target of $10. This is a highly speculative investment that may not be suitable for investors with limited resources.

PXLW Chart
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