On Financial Tides I have 2 model portfolios -- VMNHI which consists of larger companies with high volume and lots of following and VMSLO -- which holds thinly traded or low priced stocks that are very volatile and speculative. I had some room for a highly speculative stock so I used BarChart to find a stock that was speculative but hitting new highs on a regular basis. Nova Measuring Instruments -- NVMI --came up on my screening.
NOVA MEASURING -- NVMI --develops, produces and markets monitoring and measurement systems for the semiconductor manufacturing industry. The company has pioneered the Integrated Metrology concept and is now expanding its activities by developing Integrated Monitoring and Process Control systems for CMP, CVD, Photolithography and Etch manufacturing processes. The company's systems for CMP process control, delivering systems for CMP process control, delivering have measured more wafers than all other metrology companies combined.
This is a purely technical play but BarChart shows it has had price appreciation in 8 of the last 20 trading sessions and is 4 for the last 5. There has been a 136.67% price increase in the last 65 days. BarChart's technical indicators have buy indications on 12 of 13 indicators. In the last 100 days this stock has advanced to new highs 29 times and has never traded below its 50 day moving average in the last 6 months. A favorable and consistent price appreciation.
You will not find a lot of following out there but I'll refer you to 2 guys here on Seeking Alpha that have done extensive research and seem to agree that here is a hidden winner. Shlomi Cohen -- Niche Player Nove Rides Chip Production Recovery and The Inflection Point --
Nova Measuring Pullback Seems Overdue. Both articles give a great review of what the company does and why they think it will continue to do it well. My reading on the company is strictly in analyzing the price performance of the stock.
Recommendation: I've added this stock to my Marketrocracy VMSLO model portfolio around 4.90 with a suggested stop loss no lower than 3.5. This is a short term recommendation and long term investors might look for a pull back to accumulate more shares if they feel the long term prospect for this company warrant that.
Jim Van Meerten is an investor who writes on financial matters here and on Financial Tides. Please leave a comment below or email FinancialTides@gmail.com
Disclosure: No positions at the time of publication
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