EXAR - Exar Corporation $121.00 (+15.25)

Exar Corporation is a leading supplier of mixed-signal integrated circuits for high-speed broadband communications and data acquisition markets. Their products address asynchronous transmission standards, such as T/E carrier and ATM. However, the buzz on the stock comes from its new focus on optical transmission standards, such as SONET/SDH. Shares of EXAR recovered nicely after the spring sell-off. The stock rebounded from a low of $42 in early April, to an all-time high of $125.13 on Friday. We believe that EXAR could be ready to make a split/earnings run. The Company is expected to announce earnings on 10/17 and the 2:1 stock split is payable on 10/19. Going forward, support is the 8/25 intra-day high of $118.50, with stronger support at $116, just above Friday's intra-day low. Resistance is now the old high of $123.50 and then the all-time high of $125.13. We are looking for entry points on a bounce off of $118.50 or a move above $123.50 on midday volume greater than 150,000 shares. We plan to use stops at $115 to minimize risk.

Picked on Sep 29th @ $121.00 Change since picked +0.00