eFunds (EFDS)

Company. eFunds provides "integrated information, payment, and technology solutions ... [for] financial institutions, financial services companies, electronic funds networks, retailers, government agencies, eCommerce providers and other businesses around the world." (eFunds website) Translation: ATM networks, electronic funds transfers between banks, etc.

See also: Sell #1 on 22-Jul-03

Sell. In late July, I hedged my bets on EFDS by selling half my position: I wanted to lock in some profits, but there was a possibility that the stock would break out of a triangle formation to the upside, especially if there were an earnings surprise.

On July 30, EFDS reported quarterly earnings of 0.11 per share, in line with expectations. However, the company also gave guidance to expect next quarter's earning to be unchanged from the previous year.

At this point, the trend appears to be shifting from a buying to a selling trend (the -DI line has moved above the +DI line) and volumes remain weak. My gut tells me that an upside breakout is less likely than a gradual drift downward. Time to sell.