RSI Analysis of Technology Sector; Financial Overview of Five Stocks Lives in Overbought Territory – CMVT, AMAT, MU, SNDK, STX

  on Jan 21,2013 Posted in Finance ,Investment Ideas
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Relative strength index or RSI is a technical instrument used in the analysis of financial markets. RSI analysis is planned to chart the present and historical strength or weakness of a security or market based on the closing prices of a recent trading period. Relative strength index indicator should not be confused with relative strength.

The Relative Strength Index is an oscillator that gauges present price strength in relation to earlier prices. When relative strength index value goes more than 70 or lower than 30 so it shows that a security is overbought or oversold and vulnerable to a trend reversal.

An investor using relative strength index value should be aware that big boosts and declines in the stock price will affect the RSI by creating false buy or sell signals. In this article we will discuss five technology stocks with higher RSI value and average market volume over two million.

Comverse Technology, Inc (NASDAQ:CMVT) offered -8.67% return on equity while its return on assets was -0.13. The company has the market capitalization of 987.07 million while its beta factor was 1.09, beta factor is used to measure risk linked with stock. The Institutional investors held 88% stock of the New York based company while its 219.35 million shares were outstanding. RSI value for 14 days was booked as 88.13 and higher according to our criteria.

Applied Materials, Inc (NASDAQ:AMAT) has market capitalization of 15.15 billion while offered 0.84% Return on assets. The company’s institutional ownership was 79% and its EPS was recorded as 0.06. Its RSI was recorded as 82.10. Shares of the company were moving ahead of 50 days simple moving average with 14.08% and head off SMA 20 with 8.79%. Net profit margin of AMAT was 1.25% while gross profit margin was 38%.

Micron Technology, Inc (NASDAQ:MU) has RSI value of 81.86. The technology company has market capitalization of 8.06 billion while its price to sale ratio was 1.01. Micron Technology offered earning per share of -1.12 while its 1.02 billion shares were outstanding. The institutional investors own 85% shares of the company. MU has return on equity ratio of -14.23% while ROA was -5.99%.

SanDisk Corporation (NASDAQ:SNDK) has return on equity ratio of 6.96% while its return on investment ratio was 5.66%. The company offered 4.81% as return on assets. SNDK has market capitalization of $11.72 billion while its EPS was 1.97. Its RSI value was 80.46 while stock volatility for the month was 2.51%. The company earned $485.08 million in previous twelve months on revenue of $5.09 billion.

Seagate Technology PLC (NASDAQ:STX) has market capitalization of 11.94 billion while offered P/E ratio of 4.68. The Beta factor, which is used as a measure of a company’s volatility in relation to the market, was 2.40 while the PEG ratio of the stock was 0.92. RSI of the world’s biggest hard disk maker was booked as 78.92. Shares of the company were moving ahead of 50 days simple moving average with 21.56% while 200 days simple moving average with 25.99%. In the liquidity analysis, current ratio was booked as 2.09 while quick ratio was 1.78.

Disclosure: Opinions expressed in this article are those of the authors alone who have no stake in any stocks mentioned, and did not plan to acquire any stake within the next 72 hours.



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