Editor's Note:

We are adding another candidate in the semiconductor sector.


NEW BULLISH Plays

Linear Tech. - LLTC - close: 27.68 change: -0.35 stop: 26.95

Company Description:
Linear Technology Corporation designs, manufactures and markets a broad line of standard high performance integrated circuits. Applications for the Company's products include telecommunications, cellular telephones, networking products, notebook and desktop computers, video/multimedia, industrial instrumentation, automotive electronics, factory automation, process control, and military and space systems. The Company's principal product categories include amplifiers, battery management, data converters, high frequency, interface, voltage regulators and voltage references (source: company press release or website)

Why We Like It:
LLTC was listed as a potential bullish candidate last night. Shares are still trading under resistance near $28.00 and its 50-dma but I suspect the stock is about to break out higher. Investors have been focusing on technology stocks to lead the market higher. Today's late-day spike in the NASDAQ suggests tech will do well tomorrow morning. While I'm still concerned the market itself is short-term overbought and due for a dip we can still try and play the trend, which is up. Readers may want to keep positions small since the market is overbought. Fortunately, LLTC is not overbought and has been consolidating sideways under resistance near $28.00 for several days.

I am suggesting a trigger to open bullish positions at $28.25. If triggered our first target is $29.95. Our second target is $30.95.

Trigger to open positions: 28.25

Suggested Position: LLTC stock @ 28.25

If you trade options consider this:

Suggested Position: BUY CALL APR 28.00 (LLTC 10D28.00) current ask $0.90

Annotated chart:

Entry on March 12 at $xx.xx
Earnings Date 04/13/10 (unconfirmed)
Average Daily Volume: 3.9 million
Listed on March 11th, 2010