Immersion Corp (IMMR)

Company. Immersion provides tactile feedback technology "to a wide variety of customers including computer entertainment developers, peripheral device manufacturers, automotive companies and medical practitioners. We also work with software and web developers in the educational, gaming and graphic design markets. Immersion is on its way to delivering the sense of touch to every office, home, automobile, classroom and hospital." (company website)

Buy. Until 29 July 2003 IMMR was trading at less than $2, but on that day, IMMR shot up to close over $4 on news of a licensing agreement with Microsoft. Over the next few days the stock price retreated back near $3, then began a steady climb back over $5 at the start of September.

I bought after IMMR pulled back and then climbed over $6. The trend was strong, and money was flowing into the stock. However, movement after my buy was mostly sideways with occasional unnerving dips back down. The trend quickly lost strength (falling ADX line) and selling pressure overtook buying pressure (-DI line crossed above +DI line).

I had hoped that Immersion's earnings report might give the stock price a boost, but that was not to be. The company reported lower revenues and greater losses than the year before. The following day, IMMR stock moved lower but recovered to close above $6.

Sell. I put in a sell order at $6.30, hoping occasional volatility would let me close the position without a loss. Today around 2pm ET, IMMR stock jumped a bit on news that the CEO had predicted the company would benefit from increased use of its software in medical and cellphone applications. This brief spurt of enthusiasm drove the price high enough to execute my order.

Whew!