Kabeldon

Photronic Future Projection and DD over the coming ~3 months

Long
NASDAQ:PLAB   Photronics, Inc
I project an increase in the stock price of NASDAQ:PLAB due to:

  • Increase in revenue since the last quarter.
  • Commitment to Chinese and Taiwanese production plants that have a solid backing of governmental support.
  • New technologies within the industry combined with a solid demand that wont decrease and the mono-product nature of Photronic.
  • Demand for smartphones and similar products have increased in the last quarter of 2020 and the first quarter of 2021.
  • Internally the company believes that the industry-wide stocks is oversold, as told in their 'Photronics Q1 - FY21 Earnings' web-conference available on their website.
  • The lack of supply of their product market-wide has made possible for the first time in 35 years an increase in main-stream pricing of their product, as shared in the same conference at the 40 minute mark.
  • Available on the website is also two videos, hosted on YouTube, discussing two of their most recent production plants in China. But the low view-count (500) tells me they are videos made for investment meetings and similar meetings and therefore the company itself are making big steps to increase their production and gain governmental and private support.

As far as indicators go:

  • The MACD is below 0 and looks to move over the signal line and over the 0 line again.
  • The Ichimoku cloud has a red cloud within the near future but I project that it will quickly close and return to a green cloud.
  • The RSI is below the mid line and the current situation is reflected in past movements of the RSI .

As far as fundamentals go:

  • The support and resistance of the stock has had incremental increases since the start of the quarter.
  • The revenue movement compared to last years Q1 is only -2%, which is a market situation that doesn't reflect most other industries as many are still recovering from the effects of Covid-19.
  • As far as the only negative I can find in this DD is that the CEO of the company sold a fifth of his personal stocks for an undervalued price of around 11$ at the turn of the year. It could be personal reasons or a need for more capital in the company could have necessitated this sell of, but in any case its the only point I cannot fully explain or reason, but that may also be down to a lack of experience on my own part. If you have any thoughts on this please share.

Personally, I have an alert set for the crossing of the Ichimoku Conversion line up and over the Ichimoku Base Line to indicate a value increase that could projectically rise and stay risen at least temporarily over the next month or two.

Thank you, and please, if you have any other thoughts or counter-points make sure to share them so I may discuss this symbol with you.
Comment: Forgive my lack of sources, thank you.
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