Industrial Services of America (IDSA)

Company

"ISA is in the business of scrap and waste management for large, multi-location commercial and industrial companies throughout North America and Europe. We are the only company that is qualified to objectively manage both industrial and commercial scrap and waste, sell, rent, lease, and service scrap and waste processing equipment, and we are the only company that offers an integrated software solution that enables our customers to remotely access their information in a timely manner, utilize our telephony system, and participate on our private bidding network." (company website)

Buy

5-Jul-05. ISA has been in a long downtrend for most of the past year (see sidebar), but has shown signs of reversing the trend.

• Price momentum (PPO) — steadily gaining momentum over past two months
• Trend (ADX) — strengthening after buying pressure (+DI) crossed above selling pressure (-DI) in June
• Money flow (CMF) — was positive, but now negative due to pullback from recent peak
• Relative strength (RSI) — dipped down over the last week, but has now ticked back up
• Volume — increased since the breakout on heavy volume in third week of June

Sell

9-Aug-05. IDSA might have been OK — OK and nothing more — except that wshen they reported earnings on 4-Aug, revenue and profits were both down. Volumes have fallen to practically nothing, so it is time to recognize that this was a bad bet from the git-go ("signs of reversing" instead of "clearly reversed") and write the loss off to educational expenses.