Lightbridge (LTBG)

Company

"Lightbridge is a leading transaction processing company that businesses trust to manage customer transactions for greater profitability. Lightbridge adds value to fraud prevention, credit qualification, payment processing. Businesses use Lightbridge to make smarter decisions, deliver better services, ensure secure transactions, reduce costs and increase revenues and profits." (company website)

Buy

12-Dec-05. I jumped back into Lightbridge today, after having sold my earlier lots. It pulled back to the 1-month average and is moving up again today for the second consecutive day, and on heavier than normal volume.

• Price momentum (PPO) — slowed down during the pullback
• Trend (ADX) — weakening, but buying pressure (+DI) has picked up again
• Money flow (CMF) — strongly positive for past three weeks
• Relative strength (RSI) — tending up after brief weakness, was oversold (StochRSI)
• Volume — strong volume on today's rise

Sell

31-Jan-06. Twice burned, get out of the kitchen! LTBG has been slammed twice since I bought it, most recently because the earnings report did not live up to the raised expectations the company created by raising their guidance. Ouch! If they had let people be surprised by exceeding low expectations, the stock might very well be flying high right now. Or not.

Any any rate, I decided that there is a substantial risk that the $10 52-week high set last December might be the extent of it. Twice in the last five trading sessions LTBG has opened higher only to close lower for the day. Although the strong flow of money (CMF) into LTBG is a very positive sign, the weakening trend strength (ADX) and slowing momentum (PPO) are not reassuring.

I'm not going to press my luck with this stock. I'll take the money and place it elsewhere that looks more promising.