American Pacific (APFC)
Company
"American Pacific 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
20-Nov-06. MarketEdge says American Pacific is a "strong buy" although, frankly, I don't see it. The averages are moving up, true enough, and the break back above them was with high volume, but the signals are decidedly mixed, IMHO. This one will get a tight stop.
- Price momentum (PPO) — slowing
- Trend (ADX) — tanking
- Money flow (CMF) — three-month trend is very positive
- Relative strength (RSI) — higher now than mid-October, but still hovering around neutral
- Volume — pretty thinly traded although break above the averages with with heavy volume
Sell
Bottom line-1%
29-Nov-06. Whew! I got out of APFC this morning with a very small loss. I had been dubious from the beginning (see above), and my concern only grew as I watched it continue to fall and volume dry up to 5000 shares a day or less. When it opened lower again this morning, I tightened my stop in case it fell more. There was a big spread between bids and asks at the time, and APFC simply did not trade for hours. Finally someone bought a few shares at $7.30, and that was my cue to hit the sell button.
Looking at the chart after my aha! moment with Acadia (ACAD), I see the same pattern: everything was trending down (except money flow (CMF)) during the week immediately preceding the buy. This looks like more evidence of a stock-market adage, A stock in motion tends to stay in motion unless something happens to disrupt the trend.
