RFMD is in the radio frequency (RF) component design and manufacturing business for the mobile communication industry. It produces a broad range of standard and custom designed RF components including power amplifiers, transceivers and power-on-chip solutions. Although projects for the Q2 were below Wall Street estimates, the Q1 loss was less than anticipated. As the economy strengthens, demand for these components will rise. Technically, RFMD is moving off of a multi-year low and has built a base in the 2.50 to 3.50 range which has been successfully tested. The stock is now trading above its 20-day, 50-day and 100-day SMA with the 20-day SMA now above the 50- and 100-day SMA's. There is minor resistance around 4.5 with more significant resistance just above 5. With improvement in the economy and a more favorable market view of the technology sector, I would expect the stock to move back to significant resistance near 6 with a possible test of the 52-week high near 7.5.
$3.75 (08/14/08)
