I have recently received an email from an investor and also a frequent visitor to my humble blog. His name is Danny, he has invested in Atmel and is currently down by $2000. That is a lot of money to my and worth about few good Invicta' Watches at Amazon.
Anyway, as an author and founder of my humble blog, The Market Oracle, my aim is to help as many people as I can with my knowledge, skill and experience that I have gained after more than 13 years trading in the market.
His question is should he hold this stock through 2012. First of all, I did not know what is his entry price, but I figure it out, it should be at $11.20 level based on the current price of around $9.6 (based on 15% loses), for him to lost around $2,000.
Well, I promise you Danny, I will try my very best to honestly tell you what you should do now. As usual, I will first analyze the Long Term Chart follow by the Short Term Chart. I will then look at the fundamental side by analyzing the quarterly earning growth.
Email from Danny
Based on the quarterly earning for Atmel, Atmel is showing stable growth ahead. As long as it didnt show losses, it should be a safe haven stock to invest in. Even though the future forecase quarterly earning for Atmel is flat, but I believe that the super touch screen technology that Atmel supplies to many smart phone and tablet company is right on track for the future growth and potential of the company.
I believe that if the US market continues its upward move, I believe that many stocks will continue to surge further which includes Atmel. There a lot's of money which have yet to enter the market will do so in the coming month and bring the whole market to the pre crisis level.
Therefore, my advise is to hold and Atmel and continue to ride this stock to the $16 level based on your entry price at around $11.20 for a 40% gained. It is definetely not a good time to surrender and sell this stock for a loss of $2,000. Continue to ride this stock and play based on range trading of between $8 and $12.
Good luck and god bless.
Disclosure: - I currently do not hold any stock in Atmel but may initiate an entry position if the Atmel did not perform as I have analyzed and if Atmel move to the important support of $8.00. If Atmel move downward and hit $8.00, it is definetely a big buy for me.