We live is a world that is driven by technology and the little devices we all now carry. A company that seems to be at the center of this electronic evolution is Taiwan Semiconductor Manufacturing (TSM) and I think this is the best of the breed. In this market rally TSM is holding its own and its price momentum is beginning to gain traction as this Barchart provided graph shows in the last 28 trading sessions:
Barchart technical indicators:
- 72% Barchart technical buy signal based on indicators from 7 days to 6 months.
- Trend Spotter buy signal.
- Trading above its 20, 50 and 100 day moving average.
- 6 new highs and up 6.66% in the last month.
- Relative Strength Index is 62.25% and rising.
- Barchart computes a technical support level at 12.47.
- Recently traded at 12.73 with a 50 day moving average of 11.89.
Summary: Taiwan Semiconductor (TSM) has out stripped its major competition in the return to its stockholders. The P/E ratio is below the market's and its dividend rate is higher than the market's. Cutting edge technology product plus even more sophisticated products in the pipeline means the future is bright. If sales and earnings projections are met and the P/E ratio falls in line with the market, investors today could see an annual return in the 21% - 25% range over the next 5 years.
Jim Van Meerten is a Marketocracy Master
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