"The headline-grabbing iPhone 4 from Apple has generated a lot of buzz, including a wave of interest in Omnivision Technologies (OVTI)," says growth stock specialist Mike Cintolo.
The editor of Cabot Top Ten Report explains, "The company is a designer and manufacturer of tiny cameras that turn smart phones into image recorders. As iPhone sales soar, so does OmniVision, which has been confirmed as the maker of the phone's five-megapixel sensor.
"The company's image sensors are also rumored to be slated for inclusion in Motorola's Droid X smart phone, this time in an eight-megapixel version.
"This tidal wave of advanced sensors flooding into smart phones has already lifted OmniVision's profile as well as its profits; the company's May 27 earnings report made it three quarters of profits in a row (following three quarters of losses in 2009).
"OmniVision has always been a technology leader-it just launched a five-megapixel system-on-a-chip sensor that can produce HD video at 60 frames a second yet measures just a quarter inch thick-and more devices are using cameras to sell themselves to discriminating gadget heads.
"OmniVision Technologies has appeared in Cabot Top Ten Weekly 14 times since its first appearance here in 2002, and that's a good sign that management has been keeping things boiling.
"OVTI is a great setup for those wanting to get started in a strong stock before a breakout. The stock had a great run from 16 to 24 following its late-May earnings announcement.
"OVTI put in five weeks under resistance at 24, and recently pushed to new highs. You can buy a little around here, though the shares are notoriously volatile, so you may be able to buy on weakness."
Steven Halpern's TheStockAdvisors.com offers a free daily review of the favorite stock ideas of the nation's top financial newsletter advisors.
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