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David Ritchie
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Fund manager of the Green Oak Fund.
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  • Adobe Systems: Cloud Success Sends Shares To New Highs

    Last night, Adobe Systems (NASDAQ:ADBE) reported record revenues for Q4 ($1.1billion) and for fiscal 2012 ($4.4 billion). Adobe has been transitioning its business to the Cloud and this strategy appears to be paying off as subscriptions for Creative Cloud increased to 10,000 per week for Q4, up from 8,000 per week last quarter and revenues from Marketing Cloud increased 32% to $220 million.

    Management believes that they are ahead of schedule in their transition to the cloud and clearly investors liked the news as shares in Adobe are trading up 6% to $37.60 after hitting an intraday high of $38.10

    (click to enlarge)

    The daily chart is also telling us that investors like the earnings and news coming out of the company. With today's price action, on above normal volume, Adobe has broken out of the channel it had been trading in for the last 5 months. I look for a pull back to $36 on light volume as an opportunity to buy Adobe before it takes off for the clouds.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Tags: ADBE
    Dec 14 3:05 PM | Link | Comment!
  • RF Micro Devices: Barclays' Upgrade Confirms Bottom

    Yesterday, Barclays upgraded RF Micro Devices (RFMD) from Equal Weight to Overweight and raised its price target from $5 to $6. The stock performed well closing up 8%, after being up 11% intraday. In his upgrade analyst Blayne Curtis sees expanding margins due in part to the inclusion of higher margin products from recent acquisition Amalfi Semiconductor, and to a better product mix of antenna switches and tuners. He also thinks RFMD is well positioned in the growing LTE market and low-end smartphone market.

    The price action yesterday was significant as it broke the stock out a triple bottom pattern.

    (click to enlarge)

    Here's how the triple bottom played out; RFMD's stock made bottoms in June, August and October. In early November we saw the stock break out to $4.52 (closing price) before falling back and finding support at $3.80. It moved higher again and tested resistance. Yesterday we saw the stock break through this resistance as it closed at $4.75 on trading volume of 18.5 million shares which was three times average daily volume.

    In the near term we could see RFMD go to $6. In the next week or so we should see a golden cross on the chart as the 50 day moving average crosses above the 200 day moving average. This is a very bullish sign indicating higher prices and one that usually brings the stock to technical trader's attention.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Tags: QRVO
    Dec 14 2:49 PM | Link | Comment!
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