Integrated Silicon Solution (ISSI)

Company

"Integrated Silicon Solution, Inc. a technology leader, designs, develops and markets high performance integrated circuits for the following key markets: (i) digital consumer electronics, (ii) networking, (iii) mobile communications, and (iv) automotive electronics. Our primary products are high speed and low power SRAM and low and medium density DRAM. We also design and market EEPROM and Smartcards, and we are developing selected non-memory products focused on our key markets. We target high growth markets with our low cost, high quality semiconductor products and seek to build long-term relationships with our customers. We have been a committed long-term supplier of memory products, including lower density and smaller volume products, even through periods of tight manufacturing capacity." (company website)

Buy

23-Jun-05. After reaching a new peak, ISSI pulled back for a few days with a trading base around $7.20. Yesterday it showed strength during the last half-hour of trading. Today it moved up smartly from the open with heavy volume, all in the context of a general sell-off in the market. I decided to jump in at the end of the session after the price had stabilized.

• Price momentum (PPO) — building steadily for two months
• Trend (ADX) — strengthening for past month, and buying pressure (+DI) is pointing up again after a brief decline
• Money flow (CMF) — nicely positive
• Relative strength (RSI) — strong and strengthening

Sell

22-Jul-05. I decided to close my position in ISSI to take profits and raise cash. It has had a fine run, but I anticipate it will pull back soon. Plus, earnings are due out next week, and any slight surprise will likely be punished severely.