Trade-Ideas: Integrated Device Technology (IDTI) Is Today's

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Integrated Device Technology ( IDTI) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Integrated Device Technology as such a stock due to the following factors:

  • IDTI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $23.7 million.
  • IDTI has traded 106,164 shares today.
  • IDTI traded in a range 207.4% of the normal price range with a price range of $0.85.
  • IDTI traded above its daily resistance level (quality: 11 days, meaning that the stock is crossing a resistance level set by the last 11 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' 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 positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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More details on IDTI:

Integrated Device Technology, Inc. designs, develops, manufactures, and markets a range of mixed signal semiconductor solutions for the communications, computing, and consumer industries worldwide. It operates in two segments, Communications, and Computing and Consumer. IDTI has a PE ratio of 22.6. Currently there are 2 analysts that rate Integrated Device Technology a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for Integrated Device Technology has been 1.7 million shares per day over the past 30 days. Integrated Device Technology has a market cap of $1.5 billion and is part of the technology sector and electronics industry. The stock has a beta of 2.04 and a short float of 2.2% with 1.20 days to cover. Shares are down 4.3% year-to-date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Integrated Device Technology as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • This stock has managed to rise its share value by 36.22% over the past twelve months. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 114690.4% when compared to the same quarter one year prior, rising from -$0.07 million to $83.65 million.
  • IDTI 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 6.40, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for INTEGRATED DEVICE TECH INC is rather high; currently it is at 64.48%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 67.10% significantly outperformed against the industry average.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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