Broadwing (BWNG)

Company

Broadwing Corporation is the parent company of Broadwing Communications, LLC, an innovative telecommunications service provider, and Corvis Equipment Corporation, a developer of advanced optical networking equipment selling primarily to the U.S. Government. (company website)

Buy

15-Nov-05. Broadwing bottomed in April and May and has been trending up since then (see sidebar). In October it finally broke above the year-ago price, which had twice proved insurmountable.

• Price momentum (PPO) — slowing down (what was I thinking?)
• Trend (ADX) — stabilized after a weak patch
• Money flow (CMF) — strongly positive
• Relative strength (RSI) — very strong
• Volume — average volume has risen to a million shares

Sell

17-Jan-06. Broadwing has risen for eight consecutive days and set a new 52-week high last Friday on heavy volume. I decided to close my positions today to lock in profits. It is rare for a stock to push above the upper Bollinger band for four consecutive sessions, and in the short-term I expect some consolidation to take place. In the longer term I expect BWNG to push higher still, especially if earnings (coming up next week) are strong. If so, I can always jump back in for another ride upward.