In Raymond Stoudt’s Innovative Companies Covestor model, the focus is on owning the stock of leading edge, unique companies, usually in the technology sector. Stoudt focuses on company analysis and technical data when choosing stocks for the model. He addressed this investment style in his October investment report, in which he says
In most cases, my opinion of the economy or fundamental factors has no basis in my selection of stocks to buy or sell, as I am a technical analysis person by nature. I continue to focus on companies with a strong market position in their business segment. The current model positions in Cypress Semi (CY), EMC, Cisco (CSCO) and Charles Schwab (SCHW) are stocks I have traded for years and I’m confident in the management.
One of the positions he mentions in the investment report, Cypress Semiconductor (NASDAQ: CY), is currently the top holding in his model. On January 28th, CY reported a 32 percent year-over-year increase in 2010 revenue. Part of this increase was the result of the surprising popularity of their TrueTouch™ touch screen controllers and PSoC® chips. Capitalizing on the current tablet popularity, CY just announced that they had a new TrueTouch controller coming out for touch screens up to 11.6 inches. CY stock rose on this news, rising from $20.41 on January 26th to $22.04 on January 27th. It couldn’t sustain the entire increase, however, and fell to $21.15 on January 28th.
*Prices courtesy of Yahoo Finance.
