The Big MO MoSys Inc. (NASDAQ:MOSY)

MoSys Inc. (NASDAQ:MOSY)

MoSys Inc. (NASDAQ:MOSY) now has two claims to the nickname “The Big Mo”. Of course, their name lends itself to the moniker but lately the share price has also been rising at a strong rate without any accompanying news that could justify the price action from a valuation standpoint. Still, there can be little doubt that the stock is rising on the back of heavy buying. The question is – why? On the other hand, for momentum traders, who cares? Just ride it while it lasts!

Last Monday, June the 5th, MOSY shares began their upswing. Prior to that day, shares of MoSys Inc. (NASDAQ:MOSY) had not traded over 100,000 shares per day for weeks, and on some days daily share volume did not break 10,000 shares. But beginning on June 6th daily share volumes have been:

June 6 – 550,250

June 7 – 14,140,000

June 8 – 2,800,000

June 9 – 4,770,000

June 12 – 1,010,000

June 13 – 16,000,000 (a/o 1:30PM EST)

Less than a month ago, MoSys Inc. (NASDAQ:MOSY) hit its existing 52-week lows of $0.55. Today MOSY shares have traded over $2.50. MOSY shares have a long-term performance that is nothing to write home about – the shares have lost over 50% for the past year and are down over 30% YTD. However, the more recent share performance is remarkable. MOSY shares are up over 140% for the week and up over 95% for the month. That performance has attracted many momentum players who will ride the recent trend until they feel the ride is over. Importantly, the Relative Strength Index (RSI) for MOSY is 76.74. That figure does represent an overbought condition – but just barely. So there may be some more room left to the upside.

On the other hand, MoSys Inc. (NASDAQ:MOSY) released Q1 results in early May and the stock dropped on a reported net loss. Since that financial release, there has been no news that would justify the current upward swing.

Several things could be in play. One is a concerted effort to move the stock and force it onto the radar of momentum traders who will then make the move even more exaggerated. Or it could be an institutional player taking a major position. Also a possibility is the notion of insider trading on yet-to-be released material information. No doubt other possible reasons exist and, hopefully, they will become know. But one thing is certain, if this is a pure momentum play, the last one out of the pool loses.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. All information, or data, is provided with no guarantees of accuracy.

Don’t miss out! Stay informed on $MOSY and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

MoSys Inc. (NASDAQ:MOSY) Trades at Discount to Cash Holdings

MoSys Inc. (NASDAQ:MOSY)

MoSys Inc. (NASDAQ:MOSY) shares rebounded from their downtrend to gain over 34% for the day. MOSY shares ended Monday’s trading at $0.61 and shot up after today’s open before retreating, and then rebounding again to close at $0.82. Volumes were five times their 30-day, daily average.

The Performance Numbers

Shares of MoSys Inc. (NASDAQ:MOSY) are up over 18% for the week, and up almost 4% for the month. However, that performance betrays the long-term trend. YTD, MOSY shares are down almost 65% and for the year are down over 75%. MoSys Inc. (NASDAQ:MOSY) has had its market capitalization cut by two-thirds over the past three months as MOSY shares make new 52-week lows on a regular basis. That performance makes MOSY’s Relative Strength Index (RSI) score of 44.5 all the more curious. Despite the dismal stock performance, MOSY’s RSI figure is not in “oversold” territory. Most investors and traders consider an RSI score of 30 or below to generate an “oversold” condition on the stock. So does MOSY have lower to go still?

Trading at a Discount to Cash?

One factor in its favor is MoSys Inc. (NASDAQ:MOSY) cash/share figure. That currently is posted at $0.83/share. So, if the number is accurate, MOSY shares, at $0.82, are now trading at a $0.01 discount to the company’s cash holdings. MoSys Inc. (NASDAQ:MOSY) does have total liabilities posted at $11.24 million but total assets are $22.33 million which gives a stockholder equity number of $11.09 million. So is MOSY trading at a discount to its cash holdings?

MoSys Inc. (NASDAQ:MOSY) was founded in 1991 and is headquartered in Santa Clara, CA. The company develops and sells integrated circuits for the high-speed networking, digital storage, communications, and computing markets. The space MoSys Inc. (NASDAQ:MOSY) does business in is competitive and, unfortunately, MOSY shares stand out as the largest underachievers in the sector. Their earnings tell a similar story. Since 2012, MOSY shareholders have experienced a loss each year. In 2012 the EPS loss was (-$7.05). That was followed by yearly losses of (-$5.48), (-$6.60), (-$5.04), and, for 2016, (-$4.86). And those numbers tell the real story for MoSys Inc. (NASDAQ:MOSY) – if you are in the technology field and cannot produce a profit, investors have a slew of companies to choose from that can and do.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. All information, or data, is provided with no guarantees of accuracy.

Don’t miss out! Stay informed on $MOSY and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Traders Focus on MoSys Inc. (NASDAQ:MOSY)

MoSys Inc. (NASDAQ:MOSY)

Shares of MoSys Inc. (NASDAQ:MOSY) have been up over 50% today on heavy volumes. MOSY shares closed Monday at $2.15 and have hit a high today of $3.32. This morning the Santa Clara, CA-based technology company released a statement from the Nasdaq Stock Market LLC that it had regained compliance with a rule mandating that a stock’s minimum bid price must not be below $1 for ten consecutive trading days. MOSY underwent a 1:10 reverse stock-split on February 16, 2017.

About

MoSys, Inc. (NASDAQ:MOSY) is a fabless semiconductor company enabling leading equipment manufacturers of Cloud, networking, communications, and data center systems to address the continual increase in Internet users, data and services. The company’s solutions deliver data path connectivity, speed and intelligence while eliminating data access bottlenecks on line cards and systems scaling from 100G to multi-terabits per second.

The Numbers

MOSY shares are trading 74% above their 52-week low but over 65% their 52-week high. The shares are also trading 18.4% over their 50-day simple moving average but 34.3% below its 200-day simple moving average. There is also a heavy short position on MoSys, Inc. (NASDAQ:MOSY) – almost 39% of the float is represented in shares that are short the stock. That said, the consensus target price is $20 – over six times its current price level.

3/7/2017
Ticker Symbol MOSY
Last Price a/o 1:09 PM EST  $                      3.17
Average Volume                1,050,000
Market Cap (mlns)  $                    14.64
Sales (mlns) $6.30
Shares Outstanding (mlns) 6.81
Share Float (mlns) 6.44
Shortable Yes
Optionable Yes
Inside Ownership 2.93%
Short Float 38.74%
Short Interest Ratio 2.37
Quarterly Return -32.81%
YTD Return -6.52%
Year Return -69.72%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading.