iPass (IPAS)

Company

"iPass delivers simple, secure and manageable enterprise mobility services that maximize the productivity of workers as they move between office, home and remote locations. iPass connectivity services utilize the iPass global virtual network, a unified fabric of hundreds of dial-up, wireless, and broadband providers in over 150 countries. iPass security services—based on unique Policy Orchestration capabilities—work to close the gaps in protecting computers, networks assets, user identities and data over all remote and mobile internet connections." (company website)

IPAS stock chart

Buy

4-Nov-05. iPass made what should have been a double bottom earlier this year, then dipped even lower. Now it is beginning to show signs of turning the corner (sidebar). They reported earnings on 1st November, up on both a GAAP and non-GAAP basis. The price has risen all this week on higher-than-normal volumes. MarketEdge shows IPAS as a "strong buy" with a "strong upward" chart, based on technical analysis.

  • Price momentum (PPO) — increasing for past three months
  • Trend (ADX) — weak
  • Money flow (CMF) — positive
  • Relative strength (RSI) — strengthening for past three months
  • Volume — higher than normal past week on price rises

Sell

loss Bottom line
30% this lot

25-Jan-06. IPAS has been very good for the bottom line of my portfolio. IPAS set another new 52-week high yesterday and the uptrend is unmistakably clear (see sidebar). However, I decided to sell today. IPAS has been marching up the upper Bollinger band for the past two weeks, and that is statistically very unlikely to continue. Further, the new high was set on a down-day, and today's session traded lower still. These are frequently a sign of an impending reversal or consolidation period. Hence, I chose to lock in profits.

IPAS stock chart
IPAS 1-year chart