STOCK PICKS - ZYLOG SYSTEMS

Zylog systems charts although still in the negative territory seem to have got a lift yesterday. There were significant volume increase yesterday from below 10k to above 40k. Also the accumulation / distribution chart bounced a bit. The point to note here is that the stock looks attractive from a fundamental perspective also. The company has been growing, and with a forward earning basis commands of PE around 5. The only problem in this company is that the growth is profits has not been astounding and the markets dont like that. For a company to be a start (of this size) it needs to deliver higher profits QonQ. However this Q the profits dipped to 18 cr from 23 cr. The stock is in a downtrend and I would not recommend a buy immediately, but keep a watch on this for future. It might give you good returns