Spreadtrum Communications - SPRD - Deleted

This morning I deleted Spreadtrum Communications (SPRD) from the Barchart Van Meerten New High portfolio for negative price momentum

Barchart technical indicators:

• 100% Barchart short term technical sell signal
• Trend Spotter sell signal
• Below its 20, 50 and 100 day moving averages
• 38.73% off its 1 month high
• Relative Strength Index 33.10% and falling

Spreadtrum Communications Added

Today I added Spreadtrum Communications (SPRD) to the Barchart Van Meerten New High portfolio for positive price momentum.

Barchart technical indicators:

• 80% Barchart technical buy signal
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 13 new highs and up 32.41% in the last month
• Relative Strength Index 70.62% and rising
• Barchart computes a technical support level at 20.23
• Recently traded at 20.44 which is above its 50 day moving average of 16.26

Jim Van Meerten is a Marketocracy Master

Spreadtrum buy signals

Barchart shows new highs on Spreadtrum Communications (SPRD)

Barchart technical indicators:

• 64% Barchart technical buy signal
• Trend Spotter technical buy signal
• Above its 20, 50 and 100 day moving averages
• 12 new highs and up 23.37% in the last month
• Relative Strength Index 66.22% and rising
• Barchart computes a technical support level at 16.06
• Traded recently at 17.42 which is above its 50 day moving average of 14.95

Jim Van Meerten is a Marketocracy Master

Tech seems to be where its at

Spreadtrum ( SPRD ) is a semiconductor company that designs, develops and markets baseband processor solutions for the wireless communications market. Spreadtrum combines its semiconductor expertise with its software development capabilities to deliver highly-integrated baseband processors with multimedia functionality and power management.

Wall Street has discovered this stock and has 5 buy and 2 hold recommendations published. Sales and earnings projections are off the chart with sales expected to increase 146.90% this year and 23.60% next year. Earnings are a similar story with estimates of increases in EPS to be 311.60% this year 18.70% next year and continue at an annual rate of 20.00% for the next 5 years. I like these numbers.

Investor sentiment is beginning to build with the CAPS members on Motley Fool voting 180 to 29 that the stock will beat the market and a similar vote is registered by the All Stars vote of 47 to 6.

The data on Barchart shows that this is a current momentum play with 12 new highs in 20 trading sessions and 4 new highs in the last 5 days. The monthly return on this stock has been 70.03%. All of Barchart's 13 technical indicators signal a buy for a 100% buy score.

I think this stock still has some room to run because:

• Wall Street predicts double digit sales and earnings to continue
• The stock is just beginning to build a positive investor sentiment
• Each day the stock has increases in price appreciation

Jim Van Meerten is an investor who writes on investing on Financial Tides, Barchart and Seeking Alpha. Please leave a comment below or email JimVanMeerten@gmail.com

Disclosure: No positions in SPRD at the time of publication