Segue Software (SEGU)

Company

"Segue Software is a global leader dedicated to delivering quality optimization solutions that ensure the accuracy and performance of enterprise applications throughout their entire lifecycle." (company website)

Buy

18-Jan-05. Segue started to break out the third week of December, 2004. The end of last week brought further price advances on solid volume. It looks like SEGU is ready to drive higher: price momentum (PPO) is up; trend strength (ADX) and buying pressure (green +DI line) are on the rise; money is washing into the stock.

The cautionary note that I see is that SEGU is overbought. The last time it stayed overbought for a couple of weeks. With everything else looking so strong, I'm hoping for a repeat. Repeat after me: "Past performance is no guarantee of future results."

Sell

14-Feb-05. Holy crap, batman! Segue looked like it was turning out to be a good buy, then all of a sudden it just collapsed. On the 9th, SEGU turned in solid results for the fiscal year. But the outlook wasn't rosy enough for Wall Street, and the stock was slammed for a loss of over 20%.

No good deed goes unpunished.