Infineon Technologies (IFX) designs, develops, manufactures and markets a range of semiconductors and systems solutions used in computer systems, telecommunications systems, consumer goods, automotive products, industrial automation and control systems, and chip card applications. Their Automotive, Industrial and Multimarket segment designs, develops, manufactures and markets semiconductors and system solutions primarily for use in automotive, industrial and security applications, and applications with customer-specific product requirements. Their Communication Solutions segment designs, develops, manufactures and markets a range of integrated circuits, other semiconductors and system solutions for wireline and wireless communication applications.

The company is headquartered in Munich, Germany and has really experienced a lot of growth in its Chip Card and Security business segment. With more and more life being driven online there has been a leap in security risks. This has become a key issue in both the corporate and private arenas. Infineon has been able to leverage their many years of security expertise in chip development and production for cards and security applications, Infineon Technologies leads the field with its broad portfolio of security controllers, security memories, and other semiconductor and system solutions. 

The company is the number one vendor of chip card ICs worldwide. Infineon is strong fundamentally with good sales growth and solid earnings momentum. Revenues came in slightly more than a billion dollars with net income coming in at $280 million. The stock is currently forming a nice Elliott Wave-4 buy pattern projecting gains into the $18 per share area.

Infineon Technologies is an optional stock that also offers LEAPS that currently go out to January of 2009. However, be aware that their options market can be thinly traded at times, so use a limit order if electing to use options as a substitute for a straight stock purchase.

Figure 1: Elliot Wave-4 Buy Pattern for Infineon Technologies

Happy Trading.


Jeff Neal
Senior Writer, Options Strategist & Profit Strategies Radio Show Market Correspondent
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