Navarre Corp (NAVR)

Company

"Navarre Corporation (NASDAQ: NAVR) is a leading distributor of propriety and non-propriety home entertainment PC software, music and DVD. The company's customers include a wide spectrum of national and regional retailers. This customer base includes mass merchants, specialty stores, wholesalers, e-tailers. The company operates a business-to-business web site, navarre.com providing product fulfillment to both traditional and e-commerce retailers." (company website)

NAVR stock chart

Buy

12-May-05. Navarre made a second bottom at the beginning of April (see sidebar) and recently has been consolidating at the $8.00 level. The omens are auspicious:

  • Price momentum (PPO) — rising steadily
  • Trend and buying pressure (ADX) — trend stronger since buying pressure (+DI) crossed above selling pressure (-DI)
  • Money flow (CMF) — improved from strongly negative to neutral
  • Relative strength (RSI) — rising steadily

Sell

loss Bottom line
-6%

1-Jun-05. Navarre was supposed to release their quarterly earnings report yesterday after the market closed. Instead, the issued an announcement last night that the release is postponed due to the need to restate previous quarters. Knowing that the market seldom reacts kindly to such announcements, I prepared a trailing stop order to sell if NAVR fell more than -1% today.

NAVR 5-day chart

When the market opened, NAVR plunged. I got out with a loss, but still well above the low of the day. What a pity — NAVR was doing pretty well.

NAVR stock chart
NAVR 1-year chart