TSM Short Sellers

Posted on September 22, 2005 , filed under Business Gossip, Stocks | Print This Post

The short sellers were out in full effect today on TSM, Taiwan Semiconductor. TSM is the company behind the production of the chips that power the Sony Playstation 3 and the Microsoft X-BOX 360. Utilization has been up for the last few quarters and the company has raised its outlook for the remainder of the year. TSM is the worlds largest outsourced chip fabricator by revenue. The stock closed today at $7.94 and traded as low as $7.82. The stock volume was 17Mil shares traded compared to an average trading volume of 9Mil shares.

Greedy short sellers are likely pushing the price of the stock down due to a drop in prices in the Taiwan Stock Exchange.

My target price for the stock is $10 by the end of the year and $11-13 for the first half of 2006.

*Disclaimer, I own 4598 shares of TSM purchased at an average price of $9.0235 per share.

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