Yet another January Effect play is semiconductor player Trident Microsystems (TRID), a provider of multimedia semiconductor solutions for the digital home entertainment market. This stock has been destroyed by the sellers in 2011, with shares off by 90%. Trident traded as high as $1.99 in 2011, but that level is far removed from shares' current price of just18 cents.
This is another name that I think traders are going to find attractive for a January Effect play since Trident's total cash per share is 20 cents -- meaning it is currently trading below its cash per share value. Market players often consider any stock that trades near its cash per share value as ridiculously cheap. Shares of TRID are already ticking up 5.9% today, and it's off its recent low of 15 cents, so that January Effect buying could be starting.>>5 Stocks Under $10 Set to Soar My trading plan for TRID is to get long off any weakness and simply place a mental stop 10% below that recent low of 15 cents. If that low holds, then we could easily see Trident bounce huge from current levels if buyers step in. My target off any high-volume bounce is its 50-day moving average of 32 cents a share. Look for volume on any decent up day to track in near or above its three-month average action of about 1.1 million shares.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV