IntermixMedia (MIX)

Company

"Intermix Media, Inc. is a leading Internet marketing company combining extensive consumer reach, innovative technologies, and superior content to provide advertisers, partners, and affiliates with unique and effective Internet marketing opportunities." (company website)

Buy

28-Dec-04. IntermixMedia broke decisively above $4 at the beginning of December and reached a high of $6.66 before pulling back to the 1-month moving average. There has been a rise in buying pressure (+DI line) and the pullback caused MIX to become over-sold. When I bought today MIX was well above $6 and I took that as evidence that the pullback was over. Maybe not. MIX was at $2 a year ago, so the current price represents a very big one-year rise.

Sell

4-Feb-05. MIX has been marching steadily upward since it reversed direction in mid January. After MIX hugged the upper Bollinger band for several days, it became statistically probable that it would pull back or consolidate, so I put a protective stop-limit order in to sell if it began to retreat. On Friday the stop-limit was reached, so the shares traded.

Selling was simply a matter of "bird in the hand" thinking. MIX has just surpassed the earlier peak (see sidebar), so it's not unreasonable to expect a further advance. On the other hand, there has been such a big price rise in the past three months that a pullback is not unreasonable either.