Virage Logic (VIRL)

Company

"Founded in 1996, Virage Logic Corporation quickly established itself as a technology and market leader in providing advanced embedded memory intellectual property (IP) for the design of complex integrated circuits. Virage Logic has evolved to become a global leader in semiconductor IP platforms comprising embedded memory, standard cells, and I/Os primarily for the consumer, communications and networking, handheld and portable, and computer and graphics markets. Virage Logic's highly differentiated product portfolio provides foundries, integrated device manufacturers (IDMs) and fabless customers with key competitive advantages including higher performance, lower power, higher density and optimal yield. The company's comprehensive quality efforts are validated in its FirstPass-Silicon Characterization lab which ensures high quality, reliable IP across a wide range of foundries and process technologies." (company website)

Buy

9-Nov-05. I have had a buy order on VIRL for over a week, expecting that it had to pull back at some time after such a big leap upward following its earnings report at the end of October. That appears to have reversed the long downtrend (sidebar).

• Price momentum (PPO) — building steadily over past three months, sharply up after earnings
• Trend (ADX) — reversed a long decling in strength
• Money flow (CMF) — positive, but not spectacular
• Relative strength (RSI) — strengthened over past three months
• Volume — price jumps were on big volumes

I was not able to buy a full lot of 500 shares at my price. I will take that as a good sign.

Sell

23-Nov-05. I got nervous when VIRL made another high and then declined for two days in a row. The stock is up $2.50 since the beginning of November, so a "correction" would not be surprising. On the other hand, I may have pulled out prematurely, since VIRL is still quite a ways below the year-ago price and the uptrend seems pretty solid (sidebar).