A new thread for Cambridge Silicon Radio, a bluetooth play for 2004.

Cambridge Silicon Radio Holdings Ltd, the Bluetooth technology group that is about to list on the London Stock Exchange, said its offering will be priced at 160-200 pence a share.

The indicative price range corresponds to an offer size of 54-68 mln stg and a market capitalisation for the company of 192-239 mln stg after flotation.

CSR designs and manufactures single-chip radio devices - focusing initially on solutions for the 2.4GHz Bluetooth personal area networking standard. The background and experience of our development team give CSR a unique advantage to help OEMs exploit the new wave of wireless networking, allowing us to offer the most highly integrated single-chip Bluetooth solutions, which are based on commodity CMOS technology with all its inherent advantages.

www.csr.com

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CSR, which has secured over 70 mln usd of funding from a number of investors including Compaq Corp, Philips Electronics NV, Sony Corp, Intel Corp and 3i Group PLC, was founded in 1998.

The company claims on its Website to be the world's leading provider of Bluetooth, accounting for 60 pct of all Bluetooth end-products.

Bluetooth is a low-cost, short-range radio link between mobile PCs, mobile phones and other devices, enabling users to connect a wide range of devices easily and simply, without the need for cables.

CSR TA for Garfee :)

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Firstly the usual health warning, I do not profess to be a TA expert, but happy to give my opinion and analysis for what its worth!

This is the first chart of two, shorter time frame to follow.

I have drawn two historical trendlines (red); the first steeper line you may not think particualrly important, but it does serve to illustrate an important point.
When a SP breaks through a down trendline it often then becomes support, you can see that the original steeper downtrend was broken Feb / Mar earlier this year and then became support, albeit still down.

The second downtrend line is partly responsible for capping the current SP. Although breached recently the move wasn't convincing and was achieved on relatively small volumes. However, it would appear that this line will be breached quite soon, at which point it should become short term support.

It is quite clear from the chart that 8 is a significant obstacle for further gains and this level in conjunction with downtrend resistance has prevented the SP climbing. Once the downtrend is breached, at least there will be but one obstacle rather than two! What is also pretty clear is that the SP has traded in a 6-8 range over the last six months and has been unable to find support at 720p, however once the downtrend line goes and becomes support I would be reasonably confident that 720p will offer medium term support, at least until the latter half of this year.

Looking at the shorter term picture:

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On this shorter term chart you can see the original down trendline which has nearly been breached; I have also added a second shallower downtrend line from Feb this year. Additionally there is the uptrend line (green) established from April this year. Thus far this line has provided support during recent dips.

Overall it would appear that the SP is reaching something of a decision point, (within the yellow circle). The SP is contained within both support and resistance and has formed a triangular pattern. Personally I'm not a great an of triangles, pennants, wedges and such like, often what sort of shape it actually is can be the matter of much debate.

Interestingly as I type the SP is up 20p, effectively breaching the first down trend resistance and the shallower line is under attack. When and if that second resistance goes (and I think it will) this line will become short term support, moving support closer to 760-780p rather than the previous 720p.

I suppose you want a prediction and I will stick my neck out (gulp).

A new uptrend has been established, slowly but surely lines of resistance are being breached and I see no reason for the thrend not to continue. 8 may prove to be a tough obstacle, but I expect that level will give up the ghost no later than mid August.

Incidentally there is quite a falling gap from 11 to 9, gaps are not always filled, but often they are. Perhaps this recently established strength / uptrend may try to fill that gap in due course - just a thought.

AIMHO of course, read into this analysis what you will, but make sure you do your own research!

Best of luck

pth

Thanks for that ptholden. Looking forward to the day CSR reaches the 8 and continues to climb :0)

CSR (LSE:CSR):

Photo ref: PEM4767

To download: http://www.csr.com/images/hires/pem4767.jpg

CSR (LSE:CSR) today announced that a range of speech and audio
enhancement technologies have been added to CSR's BlueCore5-Multimedia
silicon to improve the quality of in-car Bluetooth applications. CSR
has selected nFore's software to bring noise and echo cancellation and
music enhancements specifically for in-car Bluetooth solutions.
nFore's technology comes via CSR's eXtension Partner Programme, an
open DSP developers' programme which brings a host of third party
software enhancements to the BlueCore5-Multimedia platform.

The offering combines CSR's long history of designing Bluetooth
technology for the automotive market (CSR customers include Audi, BMW,
Nissan, Saab) with nFore's proven air acoustic technology,
demonstrated through customers including Mitsubishi, Peugeot and
Volkswagen.

nFore offers adaptive AEC (Acoustic Echo Cancellation) to remove
echo quickly at the start of a call, as well as a full-duplex solution
to avoid voice clipping during the call. In addition, nFore's two
omni-directional microphone solution and active noise cancellation
technology further reduces unwanted noise by more than 90%, allowing
the user cleaner music or speech.

nFore brings a number of audio enhancements for improved stereo
sound including virtual reality sound and virtual stereo sound to
bring sound to life. Also included is PowBass, a bass-boost solution
for headphones which utilises unique auditory characteristics to
reproduce low frequencies.

Due to a high performance 24-bit 64 MIPS on-chip DSP, CSR's
BlueCore5-Multimedia platform is the only Bluetooth platform available
which can support a variety of third-party audio enhancement
algorithms. In addition, BlueCore5-Multimedia provides superior sound
quality with a best-in-class signal to noise ratio of -95dB.

BlueCore5-Multimedia also leads the industry for power consumption
and radio design. The radio transmits at +6.5dBm and receives at
-90dBm which eliminates interference when listening to music or taking
a call. When used in stereo headset applications, BlueCore5-Multimedia
enables industry-leading battery life of more than 24 hours of music
playback.

Anthony Murray, Senior Vice President of CSR's Wireless Audio
Strategic Business Unit, CSR commented, "The stringent requirements of
the automotive market can appear to be a barrier to entry to new
players in Bluetooth. However, nFore's market proven software combined
with CSR's automotive qualified silicon provides an easy route for
designing quality in-car Bluetooth hands-free systems."

"The flexibility of CSR's BlueCore5-Multimedia silicon means that
we are able to bring our speech and audio software to enrich the
experience of users in the automotive market," added Jack Chen, Vice
President, nFore. "nFore's participation in the eXtension Partner
Programme allows CSR's automotive customers a generous set of acoustic
technologies."

Excellent PT thanks pal and I hope you enjoyed a good swipe yesterday.

Blimey and as if by magic the both down trendlines have been taken out intraday and knocking on the door of 8 resistance. Just been having a look at L2 and there are quite a few sell orders on the book at just under 8, so obviously quite a few traders think that this is a good shorting level; understandably so given historical failure at this level. Will take a bit more momentum to break through.

Have been watching L2 order book for the last hour, looks like 8 might be coming under pressure?

interesting stuff; there was a 20000 sell order sitting on the book, the minute the SP closed in, it was pulled, the MMs have also retreated on the Sell side opening up the book to 8+

Blimey, PT, if this holds!!!! Volume doesn't look great though.

Looks like the sellers reappeared at 8, you don't have to be a rocket scientist to work out that this is a very significant level at the moment. For a few minutes though I thought the bulls might push it through. To answer the comment re volume, you can see from the chart below that volume levels are on the increase (OBV). Something I didn't mention on my previous analysis is that if the SP does continue to rise, a Golden Cross may be on the cards (50MA cross upwards through 200MA whilst both MAs rising). This would bode extremely well for the future.



pth

thanks for all your input PTH .... no great surprise that 800 proved a bridge too far at this juncture ... indeed, i would rather sp took this step at a steady rate rather than at a gallop, for such have a nasty tendency to be short-lived ...... ceratinly very happy with my investment at the mo!

Something of an update following today's activity.

Unsurprisingly resistance at 800p was a step too far, although it was a good attempt for a little while. If ever there was level to short a stock that was probably it, but I imagine it wasn't only shorters but profit taking on what was perceived as a major obstacle. The importance of the move is that it was accompanied by an increase in volume. What is also apparent is that the downtrend resistance although pierced has yet to be broken. If I had to hazard a guess I think it will take a few days or so for this particular resistance to give up the ghost, become support and then in conjunction with the uptrend support, form a platform for a credible assault on the 800p level.

pth

can't fault your judgement m8 .... that's why i am very happy to have bought the other day

I can confirm that Apple's new iPhone contains a CSR Bluecore-4 ROM WLCSP device for its Bluetooth capability.

Looks like she's having another go!!

now for a little fun! ...... will sp now hold above 800? ...... are there some automatic computer trades about to come in either as buyers or to close down shorts?

Cynic, indeed, fingers crossed.

800 just about held from a high of 818 ...... all in all, not a bad result for the day, but the break needs to be decisive, so tomorrow quite important

Two charts tonight and a few comments. Quite surprised really that CSR had another good go at 800p today, but a word of caution, look at the volume. Expecting a small pull back tomorrow, but the good news is that the downtrend resistance has been breached and as hypothesied previously should now become support and provide a base for a real go at 800p. So no real change on the first chart.



The second (and I didn't post this before) is the RSI resistance. Most peeps consider this indicator as an oversold or overbought indicator, but actually it's neither and does have other value. In this instance you can see that the RSI is replicating the 800p resistance (after a fashion) and before this level is breached, further momentum will be required.



Seems that the CSR SP is doing stuff quicker than I thought, but it will take quite a push before the 800p is gone and becomes support.

AIMHO of course and charting aint always an exact science.

pth

as always, would never disagree with your analysis which is always much more profund than mine ..... however, Dow is currently +116 after about +70 at London close ..... provided that it can hold this, I would not be at all susprised to see CSR powering ahead tomorrow ...... as far as I can determine, next resistance is at 900 and then at 1000; coincidentally nice round numbers too

Apologies for the cocked up post. I seem to have done summat to the HTML code and I can't even edit my own post, but hopefully you get the gist, perhaps Ian can sort it out.

Cynic, next reistance is at 800p............still, but it will go, just a matter of when. Pity I'm not a holder, done enough TA, but as long as it helps you guys......good enough for me :)

pth

Edit: Mostly sorted, although not sure why I am getting that little box with a red X :(