TIBCO Software (TIBX)

Company

"TIBCO Software Inc. is a leading business integration and process management software company that enables real-time business with thousands of customers and annual revenues of more than $250 million. TIBCO's software is used by leading companies in a wide range of industries including energy, financial services, healthcare, government, manufacturing, retail, telecommunications and transportation and logistics." (company website)

Buy

25-Jul-05. TIBCO plunged dramatically in March and has essentially moved sidewise since then (see sidebar). There is hope now that it is ready to begin rising again. The 50-day moving average has turned up again, and other signs are positive as well.

• Price momentum (PPO) — steady increase for past two weeks
• Trend (ADX) — strengthening, with buying pressure (+DI) increasing the spread over selling pressure (-DI)
• Money flow (CMF) — becoming less negative
• Relative strength (RSI) — gaining strength during July
• Volume — heavily traded with (5M shares/day on average)

TIBX reported earnings on 23-Jun, giving another two months before the next report.

Sell

11-Oct-05. TIBX has made me nervous since it tested the $8.50 level last week and failed to continue the advance. Although it may just be touching-up with the moving averages, I don't want to take a chance, so I closed all my positions this morning when it traded below $8.

I made respectable profits on the first two lots (10% and 7% respectively), but took a small loss (-2%) on the third lot, resulting in a modest overall profit.