Our Stock of the Week is MagnaChip Semiconductor (MX). Magnachip is a Korean-based designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communications, IoT, consumer, computing, industrial and automotive applications. The Company provides a broad range of standard products to customers worldwide. Magnachip, with more than 40 years of operating history, owns a portfolio of approximately 1,100 registered patents and pending applications and has extensive engineering, design, and manufacturing process expertise.
On June 12, the Company announced that it had begun mass production of a new 40VMXT Metal-Oxide-Semiconductor Field-Effect Transistor or MOSFET, which is used globally by manufacturers for automotive energy recovery systems.
In addition, the Company announced on May 30 that it is doing an internal separation of its display and power businesses into separate entities. Potentially this may be a preliminary step in spinning off or selling one of the newly created entities.
Technically the stock has formed a low-level cup-with-handle pattern. There is some basing action in the $11 to $11.50 area, and we are looking for a potential pullback to the $10.90 area for entries. Market conditions and news catalysts will determine if the stock can put together a breakout move.
As always, we would not chase the stock to start the week but will look to aggressively trade it as it develops.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and buy or sell anytime for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, clients, employees, and affiliates of Hammerhead Financial Strategies, LLC, directly or indirectly, controlled investment and/or trading accounts containing positions in MX.. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.