Quanta Services (PWR)

Company

"Quanta Services is a leading provider of specialized contracting services, delivering end-to-end network solutions for the electric power, telecommunications, broadband cable and gas pipeline industries. The company provides a comprehensive range of services, including the design, installation, maintenance and repair of virtually every type of network infrastructure. With more than 13,000 employees, major offices in 40 states, and field and support offices in all 50 states and Canada, Quanta Services has the manpower, resources and expertise to complete projects that are local, regional, national or even international in scope." (company website)

Buy

20-May-05. Quanta has been in a long uptrend for the past twelve months (see sidebar). PWR broke out of a base at the beginning of May. It then pulled back but has now passed the earlier peak.

• Price momentum (PPO) — climbing sharply since beginning of May
• Trend (ADX) — already strong and strengthening, with buying pressure (+DI) well above selling pressure (+DI), which is tapering off
• Money flow (CMF) — very strongly positive
• Relative strength (RSI) — high, but with a slight downtick this week

Although today was a down day, PWR gave up very little of yesterday's big jump. $9 (previous peak) should be support for the near term.

Sell

6-Jun-05. I bought into PWR right after a big jump, and there was always the possibility that it would suddenly pull back again. That happened today, returning to its price four weeks ago. The indicators that were pointing up when I bought are now pointing down, so I decided to take the loss rather than continue to old. This despite the "buy" recommendation from MarketEdge based on its technical status.