Merix (MERX)

Company

"MERIX is a global supplier of advanced technology and time critical printed circuit boards to Original Equipment Manufacturers and EMS providers. Our customers in data networking, telecommunications, wireless cellular infrastructure, high speed computing, semi conductor test equipment and specialty products, rely on Merix' outstanding quality and superior reliability. The size and scale of our operations enables customers to develop proof of concept quick-turn prototypes and ramp to volume production within a world-class organization, providing solutions that insure a competitive edge." (company website)

MERX stock chart

Buy

1-Dec-05. Merix reversed a long, steep downtrend in September, then fell back again at the beginning of November. It is now climbing back up and seems to be in a new uptrend (see sidebar).

  • Price momentum (PPO) — increasing steadily over past month
  • Trend (ADX) — strengthening
  • Money flow (CMF) — has become strongly positive
  • Relative strength (RSI) — steadily increasing
  • Volume — generally lightly traded, but up-days have been on higher than normal volume

Sell

loss Bottom line
3%

16-Dec-05. Well, +3% is better than a stick in the eye. I decided to bail out of MERX today after watching it stall out, unable to get past the 200-day moving average. Although the uptrend doesn't seem to be broken (see sidebar) — yet — the chart makes me think that MERX is going to go down before it goes up some more:

  • Momentum (PPO) has dropped off
  • Buying pressure (+DI) has fallen off
  • Money is flowing more slowly into the stock (CMF)
  • The stochastic RSI (StochRSI) has tipped back down rather than continue to move up
MERX 1-year chart
MERX 1-year chart