Israel’s Tower Semiconductor Shares Jump on Jim Cramer Recommendation
Shares of Israel’s Tower Semiconductor surged 6.1% on the Nasdaq and 10.7% on Tel Aviv’s TASE on Wednesday, following similar steep gains on Tuesday, after TV stock pundit Jim Cramer advised tracking the stock in his “4 Under-$10 High Tech Stocks to Watch,” online investment website Stockpickr reported.
Tower Semiconductor is Israel’s leader in semiconductor manufacturing, controlling the $1.1 billion Fab 3 semiconductor plant, completed in 2003. Tower also now owns the U.S. mixed signal semiconductor company Jazz Technologies, which it acquired in 2008, and a wafer fab belonging to Japan’s Micron Technology, acquired in 2011. For 2014, the TowerJazz group expects, for the first time in it’s history, to generate more than $1 billion dollars in revenue.
Cramer, the host of the popular ‘Mad Money’ program said, “From a technical perspective, Tower spiked higher here right above some near-term support at $5.44 and above its 200-day at $5.26 with strong upside volume. This move is quickly pushing shares of Tower within range of triggering a major breakout trade. That trade will hit if Tower manages to take out Tuesday’s high of $5.99 to some more key overhead resistance at $6.11 with high volume.”
“Traders should now look for long-biased trades in TSEM as long as it’s trending above Thursday’s low of $5.58 or above its 200-day at $5.26 and then once it sustains a move or close above those breakout levels with volume that hits near or above 155,068 shares. If that breakout triggers soon, then TSEM will set up to re-test or possibly take out its next major overhead resistance levels $7.53 to its 52-week high at $8.67.”
At 10:30 AM on Thursday, Tower Semiconductor shares were off slightly on profit-taking in light NASDAQ trade, down 1.1% at $6.23, giving the company a market capitalization of $290 million.