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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:

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.