Urologix (ULGX)

Company. Urologix is a medical treatment company in Minneapolis, founded "to develop, manufacture and market medical devices for the treatment of urological disorders. Our cutting edge technologies have revolutionized urological therapy and created effective new treatment options for a wide range of patients with benign prostatic hyperplasia (BPH)." (company website)

Buy. I bought Urologix just last week, the day after the company reported its first profitable quarter. Although results were announced after the close of the market, ULGX broke decisively through the $9 barrier that day. (Hmmm. Wonder if somebody knew something!) The following day, ULGX jumped up at the open and continued upward.

Sell. Although ULGX closed at another new high yesterday, I put in a sell order this morning. "Huh?" you may be wondering.

Yesterday's $12 high is 29% above the ULGX's 50-day moving average and 93% above the 200-day moving average. A year ago, ULGX was trading around $2. In short, it has come very far, very fast. A pull-back is highly likely, in my opinion. To be sure, today's retreat is a small one, and further advances are possible. Nevertheless, I decided to take my profits while I still had them. Classic bird-in-the-hand reasoning.

It is also, perhaps, a measure of the desperation I feel to get some profits into the bank after such a dismal first quarter of 2004!