Stellent (STEL)

Company

"Stellent is a global provider of content management software solutions that drive rapid success for customers by enabling fast implementations and generating quick, broad user adoption. Stellent Universal Content Management enables customers to rapidly deploy line-of-business applications as well as content management solutions for enterprise initiatives such as enterprise portals and business commerce applications." (company website)

STEL stock chart

Buy

25-Oct-05. The first lot of Stellent is now up 10% so I decided to buy another lot. STEL made a big jump to the $10 level, with huge volume, after reporting better-than-expected earnings on 3-Nov. Despite some profit-taking, it continues to hang around the $10 level, presumably consolidating for another bump up.

  • Price momentum (PPO) — accelerated after earnings
  • Trend (ADX) — still increasing strength
  • Money flow (CMF) — negative (but I've seen this before when stocks make a big jump and people take profits)
  • Relative strength (RSI) — very strong
  • Volume — huge volume on price jump to $10

Sell

loss Bottom line
4% this lot

1-Dec-04. I had tried to sell my shares in STEL earlier, on 23-Nov, but only 100 shares sold at my price. Since then, the chart has weakened and I decided it was time to bail out: momentum (PPO) is falling off; money flow (CMF) remains negative; stochastic RSI is peaking lower. Recent sessions have left a long upper tail on the candle (failure to maintain advance). STEL is near a 52-week high, which makes me think a correction is in order.

STEL stock chart
STEL 1-year chart