Ariba (ARBA)

Company

"Ariba, Inc. is the leading provider of Spend Management solutions to help companies realize rapid and sustainable bottom line results. Successful companies around the world in every industry use Ariba Spend Management software and services." (company website)

Buy

10-Nov-05. I added to my position today with another lot. In reality, I should have bought the lot long ago, but I was timid and sceptical that the price jump would hold. Having dillydallied too long, I fear I've now acted rashly. ARBA may come back down some more before it goes back up again. However, it went above $7.75 on very high volume and the price has not gone below that since. This lot brings my average price per share up to $7.47, so I have about a 9% cushion in case that happens.

• Price momentum (PPO) — leveled off a bit
• Trend (ADX) — leveling off
• Money flow (CMF) — modestly more positive
• Relative strength (RSI) — still very high, although StochRSI is cycling down
• Volume — went above $7.75 on very high volume

Sell

25-Jan-06. Ariba resoundingly surpassed expectations when it reported earnings on Monday, and the stock took off yesterday. I decided to take my profits today. ARBA opened a bit lower then vascillated up and down a bit on smaller and smaller volumes as the session wore on. Even if ARBA climbs higher, I think a pause and consolidation is likely. Thus, my sales represent yet another instance of "bird in the hand" reasoning.