IPG Photonics develops, manufactures and sells fiber lasers, fiber amplifiers and diode lasers that are used for various applications, primarily in materials processing. Co. also makes packaged diodes, direct diode lasers, laser and non-laser systems and communications components and systems. Majority of Co.'s products are designed to be used as general-purpose energy or light sources. Co.'s laser products are based on a proprietary technology platform using majority of the same primary components, such as semiconductor diodes and specialty fibers, which it configures to its customers' specifications.
When researching a stock like IPG Photonics, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from IPGP Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for IPGP stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of those ways is to calculate a Simpe Moving Average ("SMA") by looking back a certain number of days. One of the most popular "longer look-backs" is the IPGP 200 day moving average ("IPGP 200 DMA"), while one of the most popular "shorter look-backs" is the IPGP 50 day moving average ("IPGP 50 DMA"). A chart showing both of these popular moving averages is shown on this page for IPG Photonics. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the IPGP 200 DMA and the IPGP 50 DMA, we get a moving average convergence divergence indicator ("IPGP MACD"). The IPGP MACD chart, in conjunction with the chart of the moving averages, basically helps in visualizing how the moving averages are showing convergence (moving closer together), or divergence (moving farther apart). |