Wind River Systems (WIND)

Company

wind(1)_1yr
WIND 1-year chart

"Wind River is the global leader in device software optimization (DSO). We enable companies to develop, run, and manage device software better, faster, at lower cost, and more reliably. Wind River technology is currently deployed in more than 300 million devices worldwide by industry leaders like Apple, Hewlett-Packard, Boeing, Motorola, NASA, and Mitsubishi. Wind River Professional Services enable leading electronics vendors like Philips, Siemens, Nortel, and Samsung to design, develop, and deploy innovative products on or ahead of schedule, at or below budget." (company website)

wind(1)
WIND 6-month chart

Sell short

In early March Wind River handily beat Expectations when it reported 17¢ earnings. That, however, was followed by an immediate high-volume sell-off to a new one-year low. Since then the price has clawed its way back up, but the downtrend is reasserting itself, failing repeated tests of the trend line.

  • Percentage price oscillator (PPO) — above the signal line, but converging
  • Volume — higher volume down-days in recent weeks

Based on technical analysis, MarketEdge calls WIND a "short candidate" in a "strong downtrend."

Buy to cover

gain Bottom line
-12%

Well, that didn't work out as planned. The plan was that WIND would continue downward for a while, reaping a profit. Had I covered four days later, at just the right time of day, I would have made a profit, but would have, could have, should have — didn't. When it broke through and closed above the 50-day moving average I started looking to bail out.