Virage Logic (VIRL)
Company
VIRL 1-year chart
"Founded in 1996, Virage Logic Corporation rapidly established itself as a technology and market leader in providing advanced embedded memory intellectual property (IP) for the design of complex integrated circuits. Today, as the semiconductor industry's trusted IP partner, the company's Silicon Aware IP offering (embedded memories, logic libraries and I/Os) includes silicon behavior knowledge for increased predictability and manufacturability. Through its recent acquisition of Ingot Systems, the company has expanded its product offering to include Application Specific IP (ASIP) solutions such as Double Data Rate (DDR) Memory Controllers and design services." (company website)
VIRL 6-month chart
Sell short
28-Apr-08. Virage Logic has been in a steep downward trend since the beginning of the year and recently set a new 52-week low. It got a recent boost on news of a new technical advance, but the rally is running out of steam.
- Price momentum (PPO) — gaining during the rally, but still in negative territory
- Relative strength (RSI) — losing strength again after bumping again against the 50 line
- Trend (ADX) — weakening; buying power (DI+ had been growing)
- Volume — average volume continues to decline
Based on technical analysis, MarketEdge calls VIRL a "short candidate" that is "overbought" and at a "good entry point."
Buy to cover
Bottom line-15%
19-May-08. I keep waiting for VIRL to start moving down from where it is, but it just hangs on very persistently near $7. To limit my exposure, I covered half the shares at a hefty percentage loss. I'll wait on the others.
23-May-08. Yesterday VIRL jumped up and I lost my nerve. When prices fell again today I bailed. Volume has dribbled off to almost nil, and for the life of me I can't see why MarketEdge still calls VIRL a "strong buy."