RealNetworks (RNWK)

Company

"RealNetworks, Inc. develops end-to-end solutions that allow everyone — from Fortune 500 companies with locations worldwide to individuals at their desktops or other Internet-enabled devices — to create, send and receive audio, video and other multimedia services over the Internet.

"With the introduction of the Helix Initiative and the Helix Servers and RealProducer product families from RealNetworks, Inc., we continue to lead the way in delivering the highest quality Internet media experience delivering any media format, from any point of origin, across any network transport, running any OS to any person on any Internet-enabled device anywhere in the world." (company website)

Buy

4-May-06. As much as I hate the Real player, I have to admit that the stock is doing great (see sidebar). At the end of April, the company reported record quarterly earnings. The stock has just touched-back to the 1-month average, and there are other signs of improvement in the chart.

• Price momentum (PPO) — stabilized after slowing
• Trend (ADX) — weakening, but buying pressure (+DI) is picking up
• Money flow (CMF) — very positive
• Relative strength (RSI) — picking up, and no longer oversold
• Volume — heavily traded at over 2M shares per day

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.

Although RNWK has followed the lower Bollinger band down, I expected it to hold at the 50-day moving average. When it continued to fall this morning, I lost confidence.