InvenSense, Inc. (INVN-N)

(A Top Pick Oct 14/14. Down 22.35%.) This makes a motion sensor access chip, cutting-edge technology, for all smart phone devices and those that are going to be in most of the wearable devices. A small market right now and is in its infancy. Had some problems in the fall because some of their very big vendors compressed their margins. He still likes this a lot.

Make sensors that go into mobile devices. Mobile devices, like the iWatch for example, have all kinds of different sensors for temperature, barometric pressure, gyroscopes, etc. They are quite dominant in this space. The negative is that about 70% of their revenue comes from Samsung and Apple, which means that have a lot of exposure to those 2. It’s a great business to be in and there are good opportunities there. However, last year they had some poor execution and missed estimates. Because of their exposure to Samsung and Apple, there was pressure on their ability to price their product. It is now in the penalty box until they can prove this is a short-term issue. If the price can get turned around and they can put up a quarter or 2 of decent numbers, it is an interesting company to look for.

(A Top Pick Oct 14/14. Down 21.41%.) Makes the access and sensor controls that go into every smart phone produced today. A very small company that is the world leader in the specific type of microchip that goes into smart phones. He is of the belief that other categories, such as wearables, will at some point proliferate. There are lots of new market opportunities for this little company. Still likes this a lot.

(A Top Pick Oct 14/14. Down 22.3%.) Makes a motion access gyroscope sensing chip. 2 years ago, 90% of all smart phones didn’t have any type of motion sensing chip. Today we have just started to roll out phones that have motion sensors. There is going to be a proliferation of a need for all types of chips. This company is the leader in the space. Still likes it and thinks it is going to have a terrific 2015.

The leading player in motion chips so it is in most of the cell phones around the world. This is a small company, growing very, very fast. It is also suspected to be in the Apple (AAPL-Q) watch in the coming year.

Manufactures micro electrical, mechanical gyroscopes for motion processing, 3-D remote controls, etc. Technology stocks start to enter their stronger period a bit later in the year and then tend to last right into February. You are not quite there in the seasonal period but you are approaching that timeframe. Chart shows a good uptrend from May with the spike downwards in September, but generally has been staying above the trend line. He can see a lot of danger on the chart right now.