Sipex (SIPX)

Company. "Sipex Corporation is a semiconductor company that designs, manufactures and markets a broad portfolio of high performance, value-added, analog integrated circuits (ICs) for original equipment manufacturers (OEMs) doing business in the high growth markets of networking, computing, communications, and optical storage." (company website)

Buy. Sipex stock bottomed out in October, 2002, at $0.86. It then got as high as $4.34 in December, 2002, before retreating back to $2.14 on 12-Feb-03. From there it climbed steadily, gaining over 400% in seven months.

I bought SIPX on a big up-day in mid-August when all the indicators were looking very strong, indeed.

Sell. After reaching a new high of $9.45 on 9-Sep, SIPX started to lose momentum, seen in the ADX line which turned down. A big-volume day last Thursday left the price unchanged.

This morning, SIPX price continued the decline started last Friday. Since I was up over $2 per share, I decided to protect my gains at that level and put in a stop-limit order to sell if the price dropped to $8.70. It did, my shares sold.

For SIPX stock to take a breather after such handsome gains would not be surprising. There has been a rise in selling pressure (the red -DI line). The business reporters will undoubtedly call this "profit taking." It would not be unrealistic to expect that SIPX will continue to rise after a pullback. But since that pullback could easily be to around $8, or even lower, I'm quite happy to take my profits now.