Unusual volume for these tech stocks

Tom_AndersonOut of every market sector, technology holds one of the best opportunities for stocks to take off out of nowhere and shoot up to astronomical gains. Think about it…new technology is being developed all the time, and if a company innovates a game-changing product or service, its stock would likely skyrocket.

And a skyrocketing stock is normally preceded by a big volume spike, so when the amount of trading picks up in no time, it’s time to keep an eye on that stock.

Here are the stories for three stocks with unusual volume…

Anytime there is an unusually high volume of trading activity surrounding a single stock, I sit up and take notice. Although there could be any number of causes, it is a hint that something is happening with the stock.

And with unusual trading volume normally comes a change in price. As you may know by now, any change in price is something we can profit from…we just have to know which way the price will go and when.

That’s why I am inspecting these three tech stocks right now: Varonis Systems (VRNS), Arista Newtwors (ANET), and Applied Optoelectronics (AAOI).

VRNS, which provides software solutions for enterprises to map, analyze, manage and migrate their unstructured data, has a three-month average volume of almost 146,500. On a single day recently, it had a trading volume of 459,000!

That’s triple its three-month average…

As far as I can see, no insider buying has been reported yet, so we can rule that out for now.

Instead, I believe the cause could be the recent announcement of the general availability of VRNS’s DatAnywhere 2.0.

DatAnywhere 2.0 added to its current service for secure, cloud-style file synchronization and sharing that instantly transforms enormous file-sharing environments into private clouds, providing mobile access from any device to large volumes of data without moving those files from existing file servers.

With this news coinciding with the volume spike, I feel comfortable accrediting it to the organic attraction of investors.

ANET provides cloud networking solutions for datacenter and cloud computing environments.

With a three-month average trading volume of over 508,000, ANET experienced an increase of more than 200,000 in one day when it recently had a volume of 724,000.

As a relatively new stock, ANET’s heavy trading volume is very interesting. Once again, no insider transactions were reported, which can sometimes accompany a new stock.

This appears to be another case of news leading to a rise in trading volume as ANET was recently linked to Amazon’s Web Services segment because ANET is building a strategy highly levered to cloud titans, with a portfolio based on commodity silicon and an open and highly programmable operating system, EOS. This along with the transition to 10 gigabyte Ethernet networking presents an opportunity for secular and robust growth.

As for AAOI, which designs and manufactures optical communications products for cable television, fiber-to-the-home, and Internet data centers, its trading volume saw a one-day trading volume of three times more than its three-month average.

Once again it seems that the insiders had nothing to do with this increased trading volume.

Instead, it was likely caused by AAOI’s announcement of the availability of a revolutionary new laser for methane gas sensing applications.

All three of the stocks showed us how tech stocks are constantly innovating, and how virtually every stock in the technology sector has the potential to burst out into the spotlight.

For now, I’m going to keep my eye on these three stocks. When I decide to act on them, readers of my Tech Stock Jackpot service will be the first to know.

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