SeaChange International (SEAC)

Company

"SeaChange International, Inc. provides digital video systems that are changing television. Its powerful server and software systems enable television operators to provide new on-demand services and to gain greater efficiencies in advertising and content delivery. With its Emmy-winning MediaCluster technology, thousands of SeaChange systems are helping broadband, broadcast and satellite television companies to streamline operations, expand services and increase revenues. SeaChange is headquartered in Maynard, Massachusetts and has product development, support and sales offices throughout the world." (company website)

Buy

26-Jan-06. SeaChange started its turnaround last October (see sidebar) and has been bumping up against the $8.50 level for some time. There are signs in the chart that this time it may make it past that level.

• Price momentum (PPO) — long decline has reversed and is now picking up momentum
• Trend (ADX) — long stretch of weakening has stabilized and buying pressure (+DI) is picking up nicely since it last kissed selling pressure (-DI)
• Money flow (CMF) — still negative, but improving steadily
• Relative strength (RSI) — strengthening again after a long decline
• Volume — jump to $8.50 at the beginning of December was on heavy volume

Sell

15-Mar-06. Just last week Market Edge was calling Seachange International a "buy" at a "good entry point" due to being oversold. Thank goodness I resisted the urge to buy yet another lot! SEAC reported earnings yesterday and disappointed The Market with a much bigger loss than Expected. Accordingly, the stock was severely punished today.

I had held on after SEAC got slammed a week ago, and it looked as if it might recover. However, the disappointing earnings report put the nail in that coffin. Ouch! I dumped both lots of SEAC before any more damage could be done.