BTU International (BTUI)

Company

"BTU International is a market-leading supplier of advanced thermal processing equipment to the electronics manufacturing and energy generation markets. BTU manufactures reflow furnaces for printed circuit board assembly as well as for wafer-level packaging and die-level packaging. BTU also provides thermal process equipment for the solar cell, fuel cell and nuclear fuel industries. BTU, with headquarters in North Billerica, MA, operates worldwide with direct sales and service offices in the USA, Asia and Europe." (company website)

BTUI 3-month stock chart

Buy

11-Dec-06. The market soured on BTU after it reported increased earnings for the quarter, but projected "softness" in the next quarter. It has been in a channel between $9.50 and $10.50 ever since. Both moving averages (50-day and 200-day) are falling. Absent dramatic news, it seems unlikely to move above resistance (currently $9.97).

  • Price momentum (PPO) — negative
  • Trend (ADX) — weakening
  • Money flow (CMF) — was flowing in, but now flowing out
  • Relative strength (RSI) — did not move above neutral, even during the intermediate peak
  • Volume — dribbling off

Sell

loss Bottom line
-1%

29-Dec-06. I decided to cover my position in BTUI this morning, even though the stop-loss order had not been triggered. Yesterday I lowered the activation price, and this morning I had even less courage. The chart is giving off very mixed signals: momentum (PPO) is picking up, as are relative strength (RSI) and money flow (CMF), but trend strength (ADX) just gets weaker and weaker. With the year coming to a close, I decided it would be good to clear out all the dead wood and start the new year fresh.

BTUI 1-year chart
BTUI 1-year chart