Trade-Ideas LLC identified

Atmel

(

ATML

) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Atmel as such a stock due to the following factors:

  • ATML has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $66.0 million.
  • ATML has traded 6.4 million shares today.
  • ATML traded in a range 262.3% of the normal price range with a price range of $0.69.
  • ATML traded below its daily resistance level (quality: 65 days, meaning that the stock is crossing a resistance level set by the last 65 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

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More details on ATML:

TheStreet Recommends

Atmel Corporation designs, develops, manufactures, and sells semiconductor integrated circuit products primarily in the United States, Asia, Europe, South Africa, and Central and South America. The stock currently has a dividend yield of 2%. ATML has a PE ratio of 1. Currently there are 2 analysts that rate Atmel a buy, 1 analyst rates it a sell, and 9 rate it a hold.

The average volume for Atmel has been 8.9 million shares per day over the past 30 days. Atmel has a market cap of $3.2 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.58 and a short float of 2.8% with 1.12 days to cover. Shares are down 5.8% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Atmel as a

hold

. The company's strengths can be seen in multiple areas, such as its expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:

  • ATMEL CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ATMEL CORP turned its bottom line around by earning $0.08 versus -$0.05 in the prior year. This year, the market expects an improvement in earnings ($0.35 versus $0.08).
  • ATML, with its decline in revenue, underperformed when compared the industry average of 13.1%. Since the same quarter one year prior, revenues fell by 23.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, ATMEL CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 103.6% when compared to the same quarter one year ago, falling from $17.25 million to -$0.61 million.

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