SeaChange International (SEAC)

Company

"SeaChange International, Inc. provides digital video systems that are changing television. Its powerful server and software systems enable television operators to provide new on-demand services and to gain greater efficiencies in advertising and content delivery. With its Emmy-winning MediaCluster technology, thousands of SeaChange systems are helping broadband, broadcast and satellite television companies to streamline operations, expand services and increase revenues." (company website)

SEAC stock chart

Sell short

10-Jun-05. SeaChange has been falling sharply since the beginning of the year. Each earning's release (February and May) has been followed by another step down.

  • Price momentum (PPO) — negative
  • Trend (ADX) — strengthening with selling pressure (-DI) well above buying pressure (+DI)
  • Money flow (CMF) — improving recently, but still negative
  • Relative strength (RSI) — very weak

Buy to cover

loss Bottom line
-5%

18-Jul-05. I decided to cover SEAC because I suspect I missed the bottom, but to be honest I really can't tell. On the one hand this might have been the perfect opportunity to increase my short position in anticipation that weaknesses in the chart will materialize in further price drops. On the other hand, this might be the last throes of the downtrend, and it's going to go up.

I think I'll watch SEAC for a while to see if there's something more to be learned about shorts, but I don't want to put money at risk to do it.

SEAC stock chart
SEAC 1-year chart