Dot Hill Systems (HILL)

Company

"Dot Hill Systems Corp. is a leader in the innovative design and delivery of storage networking solutions to channel partners worldwide. Founded in 1999 through the merger of two data storage innovators, Artecon and Box Hill, the company has nearly two decades of expertise in designing and implementing storage solutions. Dot Hill has made a name for itself as a leader in scalable, rugged, highly available storage networking solutions for mission-critical applications in which downtime is not an option. The SANnet® II family of storage solutions is independently certified to the stringent telecommunications industry standard known as NEBS Level 3. SANnet II products are also independently certified to meet the rigorous “mil-spec” requirements of the U.S. Department of Defense (DOD)." (company website)

Buy

24-Oct-05. Dot Hill reversed a steep downtrend in May and has been climbing steadily ever since. At the moment, it is oversold after a pullback, and Market Edge identifies this as a "good entry point," based on technical analysis. Hope they're right!

• Price momentum (PPO) — lost momentum during the pullback, but it has stabilized higher than before
• Trend (ADX) — just below threshhold strength, but buying pressure (+DI) has ticked up over selling pressure (-DI) again
• Money flow (CMF) — still positive
• Relative strength (RSI) — neutral, but stochastic RSI is swinging away from oversold
• Volume — stable

Sell

25-Jan-06. HILL set a new 52-week high yesterday on solid volume, but today it opened higher and then fell back to initially erase most of yesterday's gains. That chart pattern is often a bad omen, so I decided to sell my two oldest lots of HILL to lock in profits. That still leaves one lot bought yesterday in a rush of enthusiasm.