Smith Micro Software (SMSI)

Company

"Smith Micro, headquartered in Aliso Viejo, Calif., is a leading diversified developer and marketer of wireless communication, Internet and eBusiness software products and services over multiple OS platforms, including Windows 98 and above, Pocket PC and Palm OS and Macintosh 9.x and above. The company's integrated, easy-to-use, cross-platform software products are incorporated in personal computing and business solutions that maximize wireless communications, Internet and broadband technologies, eBusiness, Internet communications (voice-over-IP), video conferencing and network fax as well as traditional computer telephony." (company website)

Buy

6-Jul-05. Smith Micro was in a long downtrend from the peak last December until a bottom in April of this year. Yesterday SMSI closed even with the peak in early June, and when it opened above the 200-day moving average I bought in. To my chagrin, SMSI then drifted lower to close for a loss of 14¢ compared to yesterday's close.

• Price momentum (PPO) — gaining momentum over past two months
• Trend (ADX) — strengthening, with buying pressure (+DI) over selling pressure (-DI)
• Money flow (CMF) — was negative but improving (until today!)
• Relative strength (RSI) — neutral or stronger for at least a month
• Volume — mixed picture: average daily volume has been declining, but price moves were on heavy volume

I hope today's sell-off was just profit-taking and not a reversal in market sentiment.

Sell

12-Sep-05. I don't get this stock. I had misgivings right after I bought, but after a stumble it climbed above my purchase price. Then, when the company announced earnings slightly above expectations, I thought it was good news, but SMSI went down precipitously. After bottoming out at $4 it seemed to be on the way back again, but the upper Bollinger Band proved a barrier. Rather than ride this one out, I decided to take a small loss and put the capital elsewhere.