Orckit Communications (ORCT)

Company

"Orckit Communications Ltd. is a leading provider of advanced telecom equipment targeting high capacity packetized broadband services. Orckit is engaged in the development of new telecom products technologies targeting packetized services offered in metro and access networks." (company website)

Not to be confused with Orkit.com

Buy

20-Nov-06. Orckit was on a slippery slope downward for most of the past year, but appears to have broken the downtrend (see sidebar). Has made a big move up since reporting earnings at the end of October.

• Price momentum (PPO) — picking up sharply
• Trend (ADX) — very strong and strengthening
• Money flow (CMF) — strong inflow
• Relative strength (RSI) — strengthening sharply
• Volume — picking up since earnings

Sell

14-Dec-06. For the past week and a half, ORCT has been working lower, but staying above $11.00. Today it took a dive, and the trailing stop, set at $10.42, kicked in. During the session ORCT traded as low as $10, so getting $10.32 doesn't look so bad. On the other hand, ORCT opened above $11. Grrr!