Long Position on CAVM @ $56.00 on 9/3/2014 (Momentum)

Cavium, Inc. (CAVM) designs, develops, and markets semiconductor processors for intelligent and secure networks.

The company operates through Semiconductor Products, and Software and Services segments. It offers integrated semiconductors that provide single or multiple cores of processors with intelligent layer 2 through 7 processing for enterprise network, data center, broadband and consumer, and access and service provider markets.

The company’s products also include a suite of embedded security protocols that enable unified threat management, secure connectivity, network perimeter protection, deep packet inspection, network virtualization, broadband gateways, third generation/fourth generation wireless infrastructure, storage systems, wireless high-definition multimedia interface, cable replacement, and embedded video applications.

In addition, it provides embedded Linux operating systems, development tools, application software stacks, support, and services. The company offers its products under the OCTEON, OCTEON Plus, OCTEON Fusion, FusionStack, NITROX, NEURON, NEURONMAX, Celestial, ECONA, LiquidIO, PureVu, and WiVu trademarks.

It sells its products to providers of networking, wireless, storage, and consumer electronic equipment directly or through contract manufacturing organizations and distributors. The company has operations primarily in the United States, China, Korea, Mexico, Finland, Taiwan, Japan, and Malaysia. It has strategic partnership with Giga Byte Technology Co. Ltd. to deliver workload optimized server platforms. 

Shares are in the process of moving higher out of their bullish "cup and handle." Higher share prices are expected for this stock.

52-Week Trading Range: $32.35 - $56.60

Entry Point: $56.00

Stop Loss: $53.20

Target Price: $61.60

Updates

9/10/2014 10:20:51 AM

CAVM fell below our stop loss. Closed at $51.35.

Position closed on 9/10/2014 at price of $51.35 with a -8.30% loss in 7 days.

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