Spartan Motors (SPAR)

Company

"Spartan Motors, Inc. is a leader in the design, engineering and manufacturing of custom chassis and vehicles for the emergency-rescue, recreational vehicle and specialty vehicle markets. Our associates are recognized by their customers and their peers as innovative, dedicated and passionate. Our products and vehicles set the bar for excellence in the industries we serve." (company website)

spar(4-1)
SPAR 4-month chart
spar(4-1)_1yr
SPAR 1-year chart

Buy

I've been watching Spartan Motors for quite a while because it has shown signs of reversing the slide that began after the July peak. In recent days it moved above the 50-day moving average and over the trend line with two days of solid gains, with volume, ahead of earnings.

SPAR missed Expectations when it announced earnings this morning, but it maintained profitability "as a result of the swift actions taken by the company to aggressively realign its cost structure to current volume levels." Excluding charges, earnings would have been $0.04 cents per share. Predictably prices plummeted on the open, but I decided to take the risk of buying in, believing that when the dust settles people will see the company is doing the right things in a very challenging environment.

  • Percentage price oscillator (PPO) — well above the signal line, boosted by two up-days of higher-than-normal volume
  • Volume — since mid-August, the higher-volume days have all been up-days.

Based on technical analysis, MarketEdge calls SPAR an "avoid" but notes that the price is above resistance ($5.88) and there are signs of a "possible trend reversal."

Sell

gain Bottom line
-9%

Ouch! The Bears on Wall Street are grouchy this week. What looked like a rally yesterday turned into today's rout, and my triggers kicked in to bail me out of the position with a loss.