Let’s talk about Silicon Motion Technology Corp. (NASDAQ:SIMO).
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This may be a higher-than-average-risk stock. They’re in a couple spaces that I love. You know, I love the RF Space (radio frequency), they have done extremely well there. They do a lot of embedded storage. In fact, of all your non-Apple smart phones – their products are in the top ten brands.
I think that’s what’s going to continue to drive their sales, their solid state controls, their micro controller controls. It’s a fabulous semi-conductor play. I don’t like the fab plays, but this a fabulous play.
Maybe the NAND flash could be a problem after the SanDisk issue. But here I like the stock, and I think it gets back and forms a double top. So, I’m looking at $31 from where it is right now. That would be a pretty nice percentage gain.
I would suggest $25, below there is where we would consider a stop loss. But I like this stock a lot, and I think this a pull back to buy it on.