Trident Shares Popped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Trident Microsystems (Nasdaq: TRID  ) sprung to intraday highs around $2.09 today, 11% above last night's closing price.

So What: There's no real news today to explain why this specialist in digital media chips is skyrocketing. Rivals like Sigma Designs (Nasdaq: SIGM  ) and Zoran (Nasdaq: ZRAN  ) are not following suit, so it's not even a sector rally.

Now What: Trident is a thinly traded stock, moving about $800,000 worth of shares on an average day. What counts as an average order for your run-of-the-mill business can take a very large chunk of Trident's order book, thus pushing the market price around like a limp rag doll. That's probably what is happening today -- a large investor had a yen for media chips and ended up distorting the share price.

Interested in more info on Trident? Add it to your watchlist by clicking here.

Fool contributor Anders Bylund doesn't holda position in any of the companies discussed here. Sigma Designs is a Motley Fool Rule Breakers pick. Try any of our Foolish newsletter services free for 30 days. True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community. The Fool is investors writing for investors.

Read/Post Comments (6) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On October 12, 2010, at 6:47 PM, Tgemini1974 wrote:

    I find it interesting when some one goes out of their way to write up an article that is so negative. "thinly traded", "limp rag doll", "no real news, not even a sector rally", "a large investor had a yen for media chips and ended up distorting the share price." add two more sentences in between the highlights of this dramatic article and you have everything the author had to say. Do research on the companies and understand that when ever you read an article that has no facts in it, it wasn't one worth reading. I didn't think these one sided stories were part of the fools practice, but I guess they let anyone write a story.

  • Report this Comment On October 12, 2010, at 9:14 PM, TMFZahrim wrote:

    Negative, really? All I'm saying is that Trident moved a lot despite a complete lack of real news to drive the action, and the illiquid nature of the stock may have been the trigger. If you have a better theory for what happened today, feel free to share.


  • Report this Comment On October 13, 2010, at 11:35 AM, RiskyBuziness wrote:

    I couldn't agree more with Tgemini1974. Why would someone go out of their way to write a one-sided, demeaning article about any company? Rival stocks didn't pop but TRID continued through the day to keep popping. It's popping today too (up 4.81%) , why is that? Who is to say exactly? But who gave the author the right to attempt to hold down the stock or any stock for that matter. I bought the stock in August, noted an upward trend and double my shares in early October. Why? Maybe because of the company's activity overseas in Brazil or professional partnerships it's creating? Maybe because the USA is often behind the curve in electronic (semi-conductor) technology? I do not know exactly, its a risky business! When I read your article, I was not impressed - I was dismayed at the author's disposition. I hope this author is not the "norm" of the Motley Fool organization.

  • Report this Comment On October 13, 2010, at 12:32 PM, woo131 wrote:

    There was a very positive report on Seeking Alpha just the day before this one (October 11). Maybe that is the reason for the surge. Maye TMFZahrim needs to do more research before he posts.

  • Report this Comment On October 13, 2010, at 6:15 PM, Tgemini1974 wrote:

    What you really need to know:

    Trident shares now up 6 consecutive days in a row. Lots of good articles written on some sites by informed writers who had done some research on a company before writing an article.

  • Report this Comment On October 18, 2010, at 11:18 AM, RiskyBuziness wrote:

    What you really need to know:

    TRID pop is for real. Up over 35% since October 4, 2010. This is no limp rag doll. (But that's not a negative perspective mind you.)

    What initially brought my attention to TRID was the Motley Fool report about "Tomorrow's Monster Stocks" now that was from someone who had done their research and knew what they were talking about.

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