Centennial Communications (CYCL)

Company

CYCL 1-year chart CYCL 1-year chart

"Centennial Communications, based in Wall, NJ, is a leading provider of regional wireless and integrated communications services in the United States and Puerto Rico with over 1.1 million wireless subscribers and 474,500 access lines and equivalents. The U.S. business owns and operates wireless networks in the Midwest and Southeast covering parts of six states. Centennial's Puerto Rico business owns and operates wireless networks in Puerto Rico and the U.S. Virgin Islands and provides facilities-based integrated voice, data and Internet solutions. Welsh, Carson, Anderson & Stowe is a significant shareholder of Centennial." (company website)

CYCL 6-month chart
CYCL 6-month chart

Buy

16-Jun-08. Centennial has pulled back about 10% from the latest peak and is now oversold. Since the chart and uptrend still look very strong, this seemed like a good time to take another position in the stock.

  • Price momentum (PPO) — fallen off since latest peak
  • Relative strength (RSI) — fell to about 50 but rising again
  • Trend (ADX) — very strong; buying pressure (+DI) picking up again after decline
  • Volume — has declined since peak; fewer sellers at this price, holding on

Based on technical analysis, MarketEdge calls CYCL a "strong buy" that is oversold and at a "good entry point."

Sell

gain Bottom line
-3%

18-Aug-08. After updating my strategy over the weekend, I realized I had made a bad mistake by going long with CYCL; if anything, I should have sold short. Accordingly, I bailed out this morning before any more damage could be done.