Lightbridge (LTBG)

Company

"Lightbridge (Nasdaq: LTBG) 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 payments, reduce costs and optimize the lifetime value of their customers." (company website)

Buy

8-May-06. Lightbridge has been climbing for several months (see sidebar). Last month I sold a lot for a nice profit before the statistical probabilities worked their inevitable will. But after a short period of consolidation, LTBG set another new 52-week high last Friday. I decided to put in a low bid, hoping to catch an outlying offer. As it happened that offer executed at the open this morning amid turmoil resulting from an announcement from T-Mobile that they would move away from Lightbridge's solution. There were some very low trades before things stabilized and rose above the open.

• Price momentum (PPO) — slowed, but was stabilized by last week's high-volume up-days
• Trend (ADX) — very strong
• Money flow (CMF) — positive
• Relative strength (RSI) — had been declining and had left oversold, but reversed again by this morning's sell-off
• Volume — high-volume up-days last week

Sell

22-May-06. The market has been really unsettled lately, and I've watched the value of my portfolio fall. When things turned sour again this morning, I sold everything off and will take a time-out.

LTBG is still above the rising 50-day moving average, but I am afraid it is going to be swept away in the sour market.