Leadis Technology (LDIS)

Company

"Leadis Technology is a fabless semiconductor company based in Sunnyvale, California, with operations in South Korea, Taiwan and Hong Kong.

"Leadis designs, develops and markets mixed-signal semiconductors that enable and enhance the features and capabilities of small panel displays. Our core products are color display drivers with integrated controllers, which are critical components of displays used in mobile consumer electronics devices. The performance characteristics of a display driver are critical to the quality and visual appeal of the images and text generated on the display and the power efficiency of the mobile device. Our current focus is on the wireless handset market, where high performance display drivers allow handset manufacturers to provide value-added, differentiating display features to attract wireless service providers and consumers." (company website)

Buy

31-May-05. Leadis is a stock I've been following with an idea of going short, but as it turned out, it began to move upward and I decided to jump on for the ride.

• Price momentum (PPO) — increasing steadily
• Trend (ADX) — buying pressure (+DI) has crossed above selling pressure (-DI) and since then the trend has picked up strength slightly
• Money flow (CMF) — strongly positive
• Relative strength (RSI) — trending upward during May

Sell

15-Jun-05. I was delighted to see LDIS jump up after a consolidation period, even moving well above the 200-day average. Unfortunately, the first two sessions of the week formed an "upside gap, 2 black crows" formation, not a good sign. It gapped lower again today, but did rise to close a fraction higher for the day, but still below the previous day's close.

My sense is that LDIS is due for a rest, and I'd not like to leave a handsome profit on the table to watch it disappear in a pullback.