Madeco SA (MAD)

This is the second time I have taken and then sold a position in MAD. The first lot was sold 14-Oct-03.

Company. Madeco is "a leading Latin American manufacturer [Chile] of finished and semi-finished non-ferrous products based on copper, aluminum, related alloys and optical fiber as well as a manufacturer of flexible packaging products for use in the mass consumer market for food, snacks and cosmetics products." (company website)

Buy. I bought MAD on 15-Oct-03, the day after selling an earlier position in MAD. At the time, I noted that I had probably sold too soon, that there were plenty of indications that the price would probably continue to rise, and when the next day turned out to be another up-day, I took a chance that the pullback had been mild and bought another 1000 shares.

For a few days, it appeared that I had been right. The price rose as high as $8.85 before starting to retreat. On 10-Nov the price gapped lower and for a high-volume sell-off. But, the opening and closing prices were quite close. Again, I took a chance that those who were going to sell had sold, and I bought an additional 750 shares the next day when the price started to rise.

Sell. Once again I have sold when there are signs that the price will go higher still: The ADX line (trend strength) is rising. The price is still above the 50-day moving average, also rising. Selling pressure (the red -DI line) is falling. The price is also still below the new high achieved on 22-Oct-03, leaving some room before resistance will be encountered.

So why did I sell? Primarily because I need some extra cash to pay off the bills from my trip to London! The profit from MAD is about the right amount. There are other stocks in my portfolio with nice unrealized gains, but those show much strong rising trend, and the voice of greed whispers to leave them alone to rise even more.