Lam Research has pulled back nicely over the last month. The stock’s powerful earnings driven breakout on January 24th lead to a fresh rally leg. By February 14th LRCX was up over 30% from the pre earnings close of January 23rd. This week the stock is testing initial support near the December high/200 day moving average. We highlighted LRCX back on January 30th: http://thisweekonwallstreet.com/lam-research-extends-breakout/
The stock is now setting up as a very low risk buy. Support near $163.00 is looking very solid. We’ve been patient while awaiting re purchase. We are now long LRCX and will add as conditions dictate. On the downside, a close back below would be a clear warning sign.
LRCX currently sports a dividend yield of 2.63%.
LRCX has a short interest ratio of 4.8.
At time of publication we are long LRCX.