Lattice Semiconductor (LSCC)

Company

"Lattice Semiconductor Corporation designs, develops and markets the broadest range of Field Programmable Gate Arrays (FPGA), Field Programmable System Chips (FPSC) and high-performance Programmable Logic Devices (PLD), including Complex Programmable Logic Devices (CPLD), Programmable Mixed-Signal Products (ispPAC), and Programmable Digital Interconnect (ispGDX). Lattice also offers industry leading SERDES products. Lattice is “Bringing the Best Together” with comprehensive solutions for today's system designs, delivering innovative programmable silicon products that embody leading-edge system expertise." (company website)

Buy

11-Aug-06. Lattice has been in a steep decline since March (sidebar), but the trend seems to have been broken by the earning announcement. LSCC swung to a profit, and revenues are up both year over year and sequentially.

• Price momentum (PPO) — sharp increase
• Trend (ADX) — strengthening, with buying pressure (+DI) well over selling pressure (-DI)
• Money flow (CMF) — flowing into the stock
• Relative strength (RSI) — strengthening
• Volume — two up-days on higher-than-average volume

With LSCC stretching out the upper Bollinger band, I've probably paid too much for the stock. Time will tell.

Sell

15-Sep-06. I took profits on LSCC today. Yesterday's sell-off was on big volume, and today's open failed to hold. Momentum (PPO) is dropping, and the trend (ADX) is weakening. LSCC has made a huge move from the low at $5.02, so I think this is probably the beginning of a pullback. Rather than risk seeing the profits dribble away, I sold.