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Low Priced Tech Firm Challenging All Time Highs After Strong Earnings - Friday, February 18, 2011
G S I Technology Inc (GSIT +$0.38 +4.04% to $9.78) closed in the middle of its intra-day range with a solid gain backed by more than 4 times average volume. It is working on the right side of an orderly flat base near minimum length, but it didn't yet trigger a technical buy signal. It reported earnings +186% on +51% sales revenues for the quarter ended December 31, 2010 versus the year ago period. Strong earnings growth history satisfies the C and A criteria. Volume and volatility often increase near earnings news. Its color code was changed to yellow with a pivot point cited based on its 1/18/11 high plus 10 cents. The number of top-rated funds owning its shares rose from 102 in Mar '10 to 128 in Dec '10, a reassuring sign concerning the I criteria.
A convincing volume-driven close above its pivot point may trigger a technical buy signal. Prior mid-day reports noted - "Leadership (L criteria) in the Semiconductor group is also reassuring. Caution is called for, as the investment system guidelines discourage buying low-priced stocks."
