If you're looking for a clear reason why ANADIGICS, Inc. (NASDAQ:ANAD) is suddenly up 10% today, don't bother - there is no clear reason. Oh, there's a reason - there's just not a clear one. On the other hand, regardless of the clarity (or lack thereof), the fact that ANAD is soaring today on huge volume should at least attract the attention of speculators looking for a new idea.
ANAD makes semiconductors, primarily for broadband wireless and wire-line communications technologies. That may mean little to most potential investors, but this might better illustrate the reason someone would care - ANADIGICS chips power Samsung's Galaxy S tablet, as well as a few other Samsung products.
Despite Samsung's legal troubles with Apple Inc. (NASDAQ:AAPL), Samsung still isn't a bad customer to have. Indeed, Samsung is still a key components-supplier for Apple's products. And, Samsung still owns almost as much of the global smarpthone market as Apple does (24% versus 31%). So, if you're riding Samsung's coattails, you're doing just fine.
That's the potential impasse for investors, however.
ANADIGICS' recent numbers, while ok, haven't looked great. Sales are dwindling, and losses are the norm. The past is not the future though. The relationship with Samsung is a relatively new one. More recently, the company unveiled a new dual-band amplifier line that should reduce a phone's or tablet's power consumption, thereby extending that device's battery life... an important hot button. It's still not clear what the relationship with Samsung or the new amplifiers will mean in terms of new revenue, but there's clearly a significant upside with both.
All that being said, the real item of interest here with ANAD isn#$%$ corporate-level opportunity, but with the chart.
With today's move, the stock has decidedly snapped a nagging downtrend. It's throwing in a lot of volume behind the move to boot. Something's changed, at least for someone.
In light of the fact that there's no news from - not even a commentary about - the company, it wouldn't be a stretch to say this is institutional money of some sort pouring in. Generally speaking, this is the kind of move that happens first, with the explanation of 'why' coming later after the so-called smart money capitalized on what other traders didn't have the privilege of knowing. Then again, with a P/S ratio of just 0.71 and some clear new paths to revenue, maybe a big player just decided now's the time to take a swing.
Either way, traders looking for an idea need to put this one on their watchlist.
Given that there were about 2.4 million shorts reported as of sept 15, if the shorts closed their positions, that would mean that almost all the shorts cashed out today! Why did it only move the little bit it did if it was a :short squeeze"?I wonder who was doing the selling against their buys!! - New shorts?? Any thoughts on this??