Wednesday, September 14, 2011

Nuance Communications - right place at the right time

Full Article and more graphs

Nuance Communications (NUAN) is a voice recognition software company that seems to be at the right place at the right time and has a price momentum that is at a turning point.  Phones, tablets, PCs, laptops and even automobiles are all beginning to use voice recognition software and this industry is growing.  A look at this Barchart of hourly trading activity over the last month shows promise:



Barchart technical indicators:

  • Although many technical indicators are still on a sell signal, sell signals are getting weaker and buy signals are strengthening
  • 56% Barchart technical sell signal - weakening
  • Trend Spotter sell signal - weakening
  • Above its 20 day moving average but still below its 50 and 100 day moving averages
  • Relative Strength Signal is 50.27 and rising
  • Barchart computes a technical support level at 17.44
  • Recently traded at 18.02 which is below its 50 day moving average of 19.10

Summary:  Nuanace Communication (NUAN) is at the center of the voice communication and voice recognition software industry.  We've seen computer go from numbers, to words and now to voice/verbal input.  I think this is a very timely buy and predict that an acquisition of this stock at today's price could see an annual total return of 14% to 16% to lucky investors.

Jim Van Meerten is a Marketocracy Master



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