American Pacific Corp (APFC)

Company

"American Pacific Corporation, a Delaware corporation (AMPAC), is a specialty chemical company that produces (i) energetic products used primarily in space flight and defense systems, automotive airbag safety systems and explosives, (ii) Halotron, a clean fire extinguishing agent and (iii) water treatment equipment. In November 2005, American Pacific acquired the former Aerojet Fine Chemicals business. Ampac Fine Chemicals, as it is now known, is a leading manufacturer of active pharmaceutical ingredients and registered intermediates under cGMP guidelines for commercial customers in the pharmaceutical industry, involving high potency compounds, energetic and nucleoside chemistries, and chiral separation, In 2004 American Pacific acquired the former Atlantic Research Corporation liquid in-space propulsion business. Ampac-ISP, as it is now known, is a leading supplier of commercial and military propulsion products and the world’s largest producer of bipropellant thrusters." (company website)

Buy

13-Apr-06. Deterioration in the APFC chart after the sell-off has mostly stabilized after falling through the support level. With it around $8, the starting point of the push to the most recent high, I decided to jump back in on an early buy.

• Price momentum (PPO) — slowed sharply, but signs of stabilizing
• Trend (ADX) — drop in buying pressure (+DI) has leveled off, and selling pressure (-DI) is falling off
• Money flow (CMF) — remained positive, even during sell-off
• Relative strength (RSI) — stabilized at neutral, and stochastic RSI is just beginning to tick up
• Volume — light recent volumes

Sell

3-May-06. APFC's volumes have fallen off the practically nothing, and the average volume has been dropping steadily. I decided to bail out, even though the chart is showing some improvement:

• Price momentum (PPO) is up sharply
• Money flow (CMF) is improving
• Relative strength (RSI) is up

The lack of liquidity makes me very nervous.