Boston, MA 10/14/2013 (wallstreetpr) – Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM) is now entering the “storm the castle” territory. It company’s cross of the 200-day moving average on a higher than usual relative volume makes a candidate of this category. The stock has an average dollar-volume of $170.8 million.
The Storm the Castle stocks have the potential of leading to really massive profits and this is why TSM is a stock worth watching. Usually, when barriers such as 200-day moving average are broken, the stock sets itself free to fine momentum traders and new buyers to push it to significant highs.
For a stock moving with strength and volume like TSM, it doesn’t really matter what is behind the price and volume action, the thing is that it can start a fresh trend. And in the face of a new trend, early investors have all the advantage of capitalizing on it and make good gains on investment.
Investing in success actually takes sound trading methodology and combination of fundamental trends with technical indicators just like the one already seen in TSM. These are what leads to well time-trading opportunity.
As a semiconductor manufacturing company, TSM engages in production, testing, packaging and sale of semiconductor devices and integrated circuits. TSM currently has dividend yield of 2.7% and PE ratio of 15.09. The contract semiconductor company has a market cap of $93.81 billion.
The company’s strengths can be seen in areas such as large and solid financial position, attractive return on equity, impressive per share earnings, growth in net income and reasonable level of debts.
In the most recent quarterly results, TSM improved EPS by 22.2% against a comparable quarter a year a go. Having demonstrated a pattern of EPS improvement over the past two years, TSM is likely to continue the trend.
So far the semiconductor stock has two “buy” ratings, one “hold” and without a “sell”.
