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

11-Nov-05. I filled out the partial lot of VIRL this morning. It has closed below $9.10 only once in nearly two weeks of trading, so when I was able to get the remaining shares at $9.15 this morning I bought them.

• Price momentum (PPO) — remains strong
• Trend (ADX) — just at threshhold (20) after reversing a long decling in strength
• Money flow (CMF) — improved since initial buy
• Relative strength (RSI) — remains high
• Volume — the consolidation period since my buy has been at low volumes, although the price jumps prompting the initial buy were on big volumes

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).