Dolby Laboratories, Inc. (DLB) shares have smashed through chart resistance after news the company's technology is being used in the new iPhone and Apple TV set-top boxes:- Price $59.07 @ 13 Sep 17
Will it retrace some of the recent rise then push again or will it continue to rise in the short term? My guess is a retracement of up to 50% of the recent rise and then push again. One concern, there was a company in the UK called Imagination Technologies (IMG) which depended heavily on Apple using its technology for years. However, Apple pulled the plug unexpectedly and the company's share price collapsed. Just a note of warning..... Price $58.19 @ 14 Sep 17
I had a look at IMG and boy where they hammered when Apple decided to look elsewhere. A lesson for us all!
Any companies that are dependent on one or two main customers can be in a position of weakness. If they get too busy their main customer might want to buy them and if they disagree they might look elsewhere. There were rumours for years that Apple would buy IMG but look what happened there!
Chart looks interesting but I have a policy of not investing too much in companies where they are dominated by one or a small number of customers. Just too risky, look at IMG.
Could we see the shares retrace 50% of their recent gain? That would be $54-$55 which is the next support line.
Signs of the shares drifting back a little - interesting share to watch. For the long term investor, maybe buy a chunk now and top up on the way down. Short term traders, maybe look for a short term sell-off/consolidation?
It is drifting back slowly but doesnt seem to want to fall too far - interesting stock but not without risks.
Here is a prime example of how fickle stocks can be - especially those that have jumped suddenly on future hope value. https://www.bullmarketboard.com/threads/veri-veritone-inc.23951/
Get your timing right you can make a fortune, get it wrong you can lose a fortune! I once sold some shares on a takeover battle and the day after they increased by another 15% but the day after they fell by 30%. The moral of the story is be happy with any profit
