Happy New Year everyone. How are you playing it?
This morning, our analyst team was bouncing ideas around when I posed the group this question:
“It’s the beginning of a new year. Do we want to continue buying strength (as we have been)? Or do we want to buy some well-selected dips on stocks in sectors we like?”
In other words, what’s our appetite?
The prevailing sentiment that won out was that we have been buying strength — and that has worked well in some areas, particularly homebuilders, Chinese stocks, and metals stocks. But the reward-to-risk opportunities right now may be more favorable in the “buy-the-dip” camp.
So with this in mind, let’s take a look at a stock in the semiconductors sector that has our attention. [Read more…]