Top Small-Cap Tech Stock is a Long-Term Hold

by Sam Collins | December 16, 2013 7:03 am

Synaptics (SYNA[1]) — This company develops, markets and sells custom-designed human interface solutions for electronic devices and products such as smartphones, tablets and ultrabooks. In late October, it was named one of Forbes’ Top 10 Small Tech Companies.

In its most recent quarterly report, the company said revenue rose 75% year over year to $222.6 million, and it earned $1.31 per diluted share. Consensus estimates are for earnings of $3.71 in fiscal 2014, ended in June, up from $3.11 the prior year, and $3.95 in fiscal 2015. The mean target is $56.62.

I first recommended SYNA on Nov. 6[2], at just below $46, saying, “The stock broke from a five-month consolidation early in September and ran from $41 to $56.50 in about six weeks. Profit-taking and market conditions then drove it from its high to its 50-day moving average at $45 and also created a gap down from $52.05 to $49.89. Since gaps are usually partially filled on a stock’s first recovery bounce, the midpoint of the gap at $51 is an initial trading target.”

The trading target was met on Nov. 27 at a high of $51.23, so traders should have already sold their positions. But longer-term buyers may wish to hold SYNA for greater gains. Current support is at $48.

SYNA Chart
Click to Enlarge

Chart Key[3]

P.S. – Traders looking to Serge Berger’s free Beat the Bell[4] service every morning will be putting themselves in capable hands.

Serge has worked for InvestorPlace for years now, and has filled in for me on the rare occasion I take a few days off. Every time I return, I see plenty of reader compliments about Serge’s work.

Serge’s technique involves swing trades in stocks and ETFs that last anywhere from two days to four weeks. He is frequently successful in capturing high-probability trades that are set up at confluence zones of support/resistance using candlesticks as his charting method.

And Serge’s advice isn’t just one-time, one-way. Win or lose, he frequently revisits ideas after the fact to see what can be learned and what new trades can be made. More importantly, Serge connects with his readers, frequently answering questions and fielding some tough ones with aplomb.

I have no doubt that traders will be well-served by Beat the Bell[4] and Serge’s daily flow of ideas.

– Sam Collins, InvestorPlace Chief Technical Analyst

  1. SYNA:
  2. on Nov. 6:
  3. [Image]:
  4. Beat the Bell:

Source URL:
Short URL: