Long Position on OVTI @ $27.29 on 9/16/2014 (Momentum)

Bullish Flag on OVTIOmniVision Technologies, Inc. (OVTI) designs, develops, manufactures, and markets semiconductor image-sensor devices worldwide.

Its principal products include CameraChip image sensors, which capture an image electronically and are used in various consumer and commercial mass-market applications; and CameraCubeChip imaging devices that are image sensors with integrated wafer-level optics.

The company also supplies companion chips used to connect its image sensors to various interfaces, including the universal serial bus and other industry standard interfaces; and companion digital signal processors that perform compression in standardized still photo and digital video formats.

In addition, it designs and develops software drivers for Linux, Mac OSX, and Microsoft Windows, as well as for embedded operating systems, such as Android, Blackberry OS, Symbian, Windows CE, Windows Embedded, and Windows Mobile. The company sells its products directly to original equipment manufacturers and value added resellers, as well as indirectly through distributors.

It serves mobile phone, entertainment, notebook and Webcam, digital still camera, security and surveillance, and automotive and medical markets. 

Shares have formed a bullish "flag" after the firm reported its quarterly results. The firm reported EPS of 91 cents, beating the estimates of 53 cents. Higher share prices are expected for this stock.

52-Week Trading Range: $13.55 - $28.34

Entry Point: $27.29

Stop Loss: $25.90

Target Price: $30.02     

Updates

10/8/2014 1:15:04 PM

OVTI fell below our stop loss following Samsung's warning. Closed at $25..55.

Position closed on 10/8/2014 at price of $25.55 with a -6.38% loss in 22 days.

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