Aehr Test Systems Stock Shows Large Players Quietly Accumulating

Aehr Test Systems stock has formed a positive divergence between large players volume and the price chart. Large players are accumulating the stock as it has pulled back over the last few days. Before we get to the chart, let’s look at what Aehr does and why this stock could have explosive growth going forward.

Aehr Test Systems Company Profile

Aehr Test was incorporated in the state of California on May 25, 1977 and completed its initial public offering on June 11, 1997. The Company’s common stock trades on the NASDAQ Capital Market under the symbol AEHR.

Aehr Test is a global semiconductor manufacturer. The Company has sales and service operations in the United States, Japan, Germany and Taiwan, and has established a network of distributors and sales representatives in certain key parts of the world. Its corporate headquarters are located in Fremont, California.

Aehr Test Systems is a worldwide supplier of systems for burning-in and testing memory and logic integrated circuits and has an installed base of more than 2,500 systems worldwide. Aehr Test has developed and introduced several innovative products, including the ABTS, FOXTM and MAX systems and the DiePak® carrier. The ABTS system is Aehr Test’s newest system for packaged part test during burn-in for both low-power and high-power logic as well as all common types of memory devices. The FOX system is a full wafer contact test and burn-in system. The MAX system can effectively burn-in and functionally test complex devices, such as digital signal processors, microprocessors, microcontrollers and systems-on-a-chip. The DiePak carrier is a reusable, temporary package that enables IC manufacturers to perform cost-effective final test and burn-in of bare die.

Aehr Test Systems News

On July 12, 2017, Aehr Test Systems announced that it received a follow-on order exceeding $3.8 million for multiple ABTS test and burn-in systems from a leading multi-national manufacturer of advanced logic integrated circuits (ICs) for automotive, embedded processing, digital signal processing and analog applications. The order also includes down payments to lock in delivery dates. The ABTS systems are planned to ship by the end of calendar year 2017.

Mark Allison, Vice President of Sales, said, “We are pleased to receive another follow-on order from this customer, who continues to run at full capacity in their burn-in and test areas. Our ABTS Systems, with their individual temperature control capability for high-power devices, are a key part of this customer’s quality and reliability program for their expanding line of automotive products, and are helping companies that supply devices into the automotive sensor, mobile communications, IC, and Internet of Things markets meet the higher quality and reliability needs of these markets. The ABTS system capabilities, along with our superior customer support, have more than met the expectations of this customer. This has led to a mutually beneficial business relationship resulting in our largest installed base of ABTS systems.”

Aehr appears to be benefiting from the rapid growth in automotive sensor technologies. This includes Advanced Driver Assistance Systems (ADAS) such as collision avoidance systems using LIDAR (Light Detection and Ranging), RADAR or other sensing technologies. Autonomous vehicles use collision avoidance systems to detect obstacles and to navigate safely through dangerous environments. Reliability of the devices in these systems is especially critical for autonomous driving applications so that means manufacturers of ICs in the automotive industry really need the testing services of companies like Aehr Test Systems. This means Aehr Test Systems stock could soar on explosive demand growth for its critical systems testing hardware and software.

Aehr Test Systems Stock

Aehr Test Systems stock looks like a good setup on a Symmetrical Triangle pattern. The Effective Volume study shows large players volume is rapidly rising. The Twiggs Money Flow confirms the stock is under accumulation. We also had a bullish Pocket Pivot signal on Friday, July 28, 2017.

Prices have been consolidating lately and there is a resistance zone just above the current price starting at 4.06. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 4.04, a stop order could be placed below this zone.

Aehr Test Systems stock was found using my GST Positive Divergence screener as talked about here.

NVDA Stock Could Move 40% Higher Over Next Couple of Years

The decision by Toyota Motor Corp to use NVIDIA Corporation to power the automaker’s autonomous driving systems could generate $1 billion to $1.7 billion in incremental sales during the next two decades and explode NVDA stock higher.

Nvidia could be making some significant earnings from Toyota, as much as $1.7 billion, by 2019, based on how much of the vehicle manufacturer’s unit shipments contain Nvidia’s “Drive PX” chips for driver assistance, says Needham & Co.’s Rajvindra Gill, as he increases his price target on NVDA stock to $200 or about 40% from its current price.

Toyota announced back in May 2017 that it plans on using the Drive PX chips from Nvidia.

There was a positive mention by Jefferies & Co.’s Mark Lipacis, who cut his rating on shares of Intel stating Nvidia is leading a “fourth wave” of computing which may erode Intel’s server-chip market-share.

The analysts said Toyota intends to deploy the level 2 chips by 2020 in everything from the Corolla to Lexus. Level 2 autonomy means systems which can control speed and steering with no driver interaction for limited intervals.

And it is not just Toyota. NVDA stock also has the catalyst of developing an ecosystem of Level 2 thru Level 4 layouts with major OEMs. Nvidia also has partnered with Volvo AB on self-driving technologies.

Nvidia is set to rake in a ton of money.

The company already has revenue growing by 14.57% on average over the past 5 years. This is quite good. Measured over the past 5 years, NVDA shows a very strong growth in EPS. The EPS has been growing by 32.45% on average per year.

NVDA has a Return On Equity of 36.40% which is among the best returns in the industry. The industry average is 12.08%. NVDA outperforms 97% of its industry peers.

NVDA Stock

The chart does not look like a decent entry opportunity at the moment. Prices have been extended to the upside lately. I would prefer to wait for a consolidation before taking a long entry.

TrueCar Inc Santa Monica CA Headed Up the Chart

TrueCar Inc of Santa Monica California is a solid looking stock that’s in a strong uptrend. Institutional buy transactions have increased by 21% over the last 3 months. What do institutional investors like about this company?

TrueCar Inc Santa Monica CA

On May 9, 2017, TrueCar reported a Q1 EPS loss of -$0.01 versus the -$0.02 estimate. Revenue also beat rising 22.5% year-over-year to $75.8 million versus the $73.34 million estimate. Units were 217,656 in 1Q17, up 24% from 174,982 in 1Q16. Franchise dealer count was 11,734 as of March 31, 2017, a record and an increase from 11,151 as of December 31, 2016. Independent dealer count was 2,716 as of March 31, 2017, a record and an increase from 2,597 as of December 31, 2016.

The biggest risk I see with this company is if the car market completely crashes because of interest rate hikes. We know that auto sales have been coming down, while auto loan delinquencies have been rising.

I have mixed feelings about this stock and would prefer to trade it as a short term swing trade.

TrueCar, Inc. is a digital automotive marketplace dedicated to being the most transparent brand in the industry. TrueCar shows consumers what others paid for the car they want, so they can recognize a fair price. Users receive upfront pricing information when they connect with TrueCar Certified Dealers, allowing them to enjoy a more confident buying experience. TrueCar operates its own site and powers car-buying programs for over 500 companies, including some of the most trusted brands in the world such as USAA, AARP and American Express. TrueCar has a network of over 14,000 Certified Dealers and currently, over one third of all new car buyers engage with the TrueCar network during their purchasing process.

TrueCar Stock Chart


TRUE looks like a good entry on the chart with a candle over candle reversal off the 20 SMA. Prices have been consolidating lately and the volatility has been reduced. There is a little resistance above the current price. Another positive sign is the recent Pocket Pivot signal.

The Effective Volume suggests large institutional traders are accumulating the stock but again, anything having to do with the auto industry is dangerous as auto sales have plunged from Federal Reserve rate hikes.

The New BMW 5 Series is a TOTAL TECH FEST!

Shmee gives us a tour of the new 7th generation BMW 5 Series, and specifically a 530d. This car has a crazy amount of awesome tech inside and so we’re starting to see the IoT revolution taking hold and specifically chip makers and sensor makers really supplying a lot of parts now to the automotive industry.

The New BMW 5 Series is a TOTAL TECH FEST!