Central Garden & Pet (CENT)

Company

cent(2-1)_1yr
CENT 1-year chart

"Central Garden & Pet Company is a leading innovator, marketer and producer of quality branded products for the lawn & garden and pet supplies markets. Committed to new product innovation, our products are sold to specialty independent and mass retailers." (company website)

cent(2-1)
CENT 6-month chart

Buy

Central blew past Expectations when it released earnings last week, which ironically was followed by a huge sell-off. I surmise that it was people "taking profits" (as they say when they can't find any other explanation for a sell-off following good news). Since the end of November, CENT has been climbing steadily, marching along the upper Bollinger band, practically in a straight line for over two months. Both the 50- and 200-day moving averages are rising, and average volume is up substantially over the past six months.

  • Percentage price oscillator (PPO) — just a whisker above the signal line, where it has been for weeks
  • Volume — sell-off was followed by three consecutive up-days.

Based on technical analysis, MarketEdge calls CENT a "strong buy" in a "strong upward trend."

Sell

gain Bottom line
1%

Yesterday, CENT reached a new 52-week high on very heavy volume, so I put in a stop-loss order to protect gains. Unfortunately, CENT sunk so low at the opening that the orders triggered and most of the gains were wiped out. It had reached the upper limit of the upward channel in any case, and I fully expected it to start falling, just not so rapidly all at once.