Maxtor (MXO)
Company
"Maxtor Corporation is one of the world's leading suppliers of hard disk drives and data storage solutions. The Company has an expansive line of storage products for desktop computers, storage systems, high-performance Intel-based servers, and consumer electronics. Maxtor has a reputation as a proven market leader, built by consistently providing high-quality products and service and support for its customers." (company website)
Buy
8-Jun-05. Maxtor bottomed in November after a sharp decline and has been moving generally upward since. After peaking at $6 in March, MXO pulled back and is just now testing the $6 level with some heavy volumes.
- Price momentum (PPO) — was declining until four weeks ago when it suddenly turned positive and is gathering momentum
- Trend (ADX) — finally showed definite strength in past three weeks after buying pressure (+DI) crossed above selling pressure
- Money flow (CMF) — now strongly positive
- Relative strength (RSI) — picking up strength for nearly six weeks now
17-Jun-05 MXO has been pulling back from the most recent peak, and yesterday appeared to be ready to start going back up again. Today it plunged dramatically in a move pundits attributed to concern over a price war. But then it began creeping steadily back up again, and I decided to double-down. With volume of nearly 7 million shares, I think the least courageous stakeholders have flown the coop. Lordy, I hope I'm right.
Sell
Bottom line-31%
5-Oct-05. I wasn't right. True enough, MXO did recover after falling some more, but that was just a prelude to a big sell-off in early August. I held on thinking MXO might just go sidewise for a while, but it went down some more. This week I put in a stop-loss order to trigger if the week-long apparent reversal faltered, and that order was triggered this morning when MXO traded below $4.31.
I may have made bad matters worse by selling off only half my shares, however. Money flow (CMF) had been improving for a while, so I will see if anything good happens, or whether this is just more wishful thinking.
