BALTIMORE (Stockpickr) -- Put down the 10-K filings and the stock screeners. It's time to take a break from the traditional methods of generating investment ideas. Instead, let the crowd do it for you.
From hedge funds to individual investors, scores of market participants are turning to social media to figure out which stocks are worth watching. It's a concept thats known as "crowdsourcing," and it uses the masses to identify emerging trends in the market.
Crowdsourcing has long been a popular tool for the advertising industry, but it also makes a lot of sense as an investment tool. After all, the market is completely driven by the supply and demand, so it can be valuable to see what names are trending among the crowd.
RF Micro Devices Nearest Resistance: N/A
Nearest Support: $6
Catalyst: TriQuint Acquisition Small-cap RF communications stock RF Micro Devices (RFMD - Get Report) is up more than 16% on high volume today, after news hit that the firm was acquiring TriQuint Semiconductor (TQNT) in a move to increase its exposure to the lucrative mobile chip business. The $1.6 billion acquisition will be paid for in stock. Shares of RFMD are pushing to new highs following the announcement. Making new highs is significant from an investor psychology standpoint because it means that everyone who has bought shares in the last year is sitting on gains. As a result, the "back to even" mentality is less of a concern than it would be for a name with a higher proportion of shareholders sitting on losses. If you decide to be a buyer here, I'd recommend keeping a tight stop in place.