Chartered Semiconductor Manufacturing (CHRT)

Company

"Chartered Semiconductor Manufacturing, one of the world’s top dedicated semiconductor foundries, offers leading-edge technologies down to 90 nanometer (nm), enabling today’s system-on-chip designs. The company further serves the needs of customers through its collaborative, joint development approach on a technology roadmap that extends to 45nm. Chartered’s strategy is based on open and comprehensive design enablement solutions, manufacturing enhancement methodologies, and a commitment to flexible sourcing. In Singapore, the company operates a 300mm fabrication facility and four 200mm facilities." (company website)

Buy

16-Jun-05. I had shorted CHRT after a big jump up, thinking it would pull back significantly. It didn't. After I covered the short today, I bought more shares.

• Price momentum (PPO) — picking up slightly
• Trend (ADX) — still strong, and buying pressure (+DI) is increasing
• Money flow (CMF) — neutral
• Relative strength (RSI) — strong, and getting stronger
• Stochastic RSI — recovering from being oversold

24-Jun-05. CHRT has continued to move sidewise, and I became convinced that it was building a 'base' for further advances. Yesterday CHRT finished strongly, and I put in a buy order for another lot (500) shares. For most of the morning I was reassured that I had got it right, because the price hung within one cent of my bid. Finally after four hours had passed, I was able to pick up the shares, in odd lots. Unfortunately, by the end of the session, the bears won the tug-of-war and CHRT finished 3¢ lower than the day before. On reflection, I think I'm going to wish I had waited another day or two for the market to get over whatever ails it (OIL).

Sell

18-Jul-05. I've been nervous about CHRT for quite some time because the chart is so "gappy" — it jumps up or down from one day to the next quite frequently. Since I wanted to generate some cash, I sold CHRT following the principle of weeding out the positions with the weakest charts. In CHRT's case, the trend (ADX) has been flat for a week, and over the past several weeks there has been a general increase in selling pressure (-DI). Money flow (CMF) has also started to weaken.