Is EMKR a stock you should think about buying?
The semiconductor stock EMCORE (EMKR) may look attractive to some traders. That’s especially true for those looking for low-priced speculative plays right now.
But savvy astro-traders should be a little bit more cautious about this stock.
The company designs and manufactures Indium Phosphide optical chips, components, subsystems, and systems for the broadband and specialty fiber optics market.
Its main customers are cable television and fiber-to-the-premise networks, satellite communications providers, and the defense and homeland security sectors.
EMKR Is A Favorite On Some Trading Forums
This is a surprisingly popular stock, at least among part-time traders looking for speculative technology plays.
And no wonder. AT $5 a share, EMCORE is currently trading at slightly below book value, It’s priced at a mere fraction of its price 10 years ago.
But speculators shouldn’t be too hasty in considering EMKR as a trading candidate. The trading volume and relative strength for this stock are both fairly mediocre. This suggests that it might not hold up well in a portfolio under stress, in spite of its longer-term trading record.
And there are astrological causes for caution, too.
During the coming weeks this stock will be have transiting Saturn square its First-Trade Sun, which is not particularly encouraging. We’ve also got transiting Chiron parallel First-Trade Saturn, which can potentially complicate things even more for this stock.
And there are other astro-trading factors worth considering as well.
Take a look at the chart pictured here. It shows the transiting planets at this week’s closing bell in relationship to the EMKR First-Trade horoscope.
This reveals some additional warning signs.
The sesquiquadrate from transiting Jupiter (1) to First-Trade Neptune (2) stimulates speculative activity. This obviously helps make this stock seem quite appealing. And with transiting Mars (3) conjoining First-Trade Pluto, it’s certainly possible that we’ll see some substantial trading action during the coming weeks.
But pay special attention to transiting Neptune (4) conjoining First-Trade Mercury at the First-Trade Midheaven. This is a potent reminder that things may not be quite as they seem with EMKR. The possibility of mis-judging this stock is very high.
In short, if you want to trade EMKR, be careful.
You would do well to wait on the sidelines a bit before adding a position to your portfolio.