Pixelworks’ Next Bounce Could Result in 25% Profits

by Sam Collins | July 29, 2014 1:14 am

Pixelworks (PXLW[1]) — I last covered this designer of video and pixel-processing semiconductors and software for high-end digital video applications on June 16[2], at $7.73. The company’s technology includes Ultra HDTVs, also known as 4K, and it demonstrated similar technology for mobile applications.

On May 8, Pixelworks 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 a profit of $0.14 per share in 2014 and $0.44 in 2015. The company is scheduled to report quarterly earnings after the close on July 31.

This speculative small-cap growth stock was first featured as the Trade of the Day on Feb. 20[3], when it was trading near $5, based on positive technical analysis from our Profit Scanner[4] tool. PXLW 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. On April 11[5], I set a buy point at $5.50, and hopefully some readers bought at that level.

In June, I said the stock should be bought under $8 with a trading target of $10. It reached a high of $9.83 on July 23, before again succumbing to profit-taking. My recommendation remains the same: Speculative traders should buy PXLW under $8 with a price objective of $10.

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Disclosure: Sam Collins owns shares of PXLW.

Source URL: https://investorplace.com/2014/07/trade-day-pixelworks-pxlw-5/

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