Trade-Ideas LLC identified

Silicon Motion Technology

(

SIMO

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Silicon Motion Technology as such a stock due to the following factors:

  • SIMO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.6 million.
  • SIMO has traded 47,616 shares today.
  • SIMO is trading at a new lifetime high.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in SIMO with the Ticky from Trade-Ideas. See the FREE profile for SIMO NOW at Trade-Ideas

More details on SIMO:

Silicon Motion Technology Corporation, a fabless semiconductor company, designs, develops, and markets semiconductor solutions worldwide. The stock currently has a dividend yield of 1.8%. SIMO has a PE ratio of 5. Currently there are 9 analysts that rate Silicon Motion Technology a buy, 1 analyst rates it a sell, and 1 rates it a hold.

TheStreet Recommends

The average volume for Silicon Motion Technology has been 467,700 shares per day over the past 30 days. Silicon Motion Technology has a market cap of $1.4 billion and is part of the technology sector and electronics industry. Shares are up 26.1% year-to-date as of the close of trading on Monday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Silicon Motion Technology as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, growth in earnings per share and increase in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 6.1%. Since the same quarter one year prior, revenues rose by 21.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • SIMO has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.13, which clearly demonstrates the ability to cover short-term cash needs.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • SILICON MOTION TECH -ADR has improved earnings per share by 8.6% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, SILICON MOTION TECH -ADR increased its bottom line by earning $1.73 versus $1.30 in the prior year. This year, the market expects an improvement in earnings ($2.62 versus $1.73).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Semiconductors & Semiconductor Equipment industry average. The net income increased by 11.1% when compared to the same quarter one year prior, going from $12.07 million to $13.41 million.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.