Sierra Wireless (SWIR)

Company

"Sierra Wireless modems and software connect people all over the world with mobile broadband networks that keep them in touch, informed, and productive from wherever they need to be. In this global, high growth industry, Sierra Wireless aims to be a leader in wireless solutions by being cost effective, innovative and responsive to customers.

"Founded in 1993, Sierra Wireless's technical expertise has enabled the company to build highly successful products celebrated for innovation, quality, and reliability. The company was instrumental in developing some of the first wireless data devices and remains committed to developing new, innovative products and software for emerging network technologies.

"Sierra Wireless offers a diverse product portfolio addressing enterprise, consumer, original equipment manufacturer, machine-to-machine, and specialized vertical industry markets, and provides professional services to customers requiring expertise in wireless design, integration, and carrier certification." (company website)

swir(4-1)
SWIR 4-month chart
swir(4-1)_1yr
SWIR 1-year chart

Buy

Sierra Wireless bottomed out in March, but has climbed steadily since then. In July, the 50-day moving average crossed above the 200-day, and both averages are now rising smartly. After peaking near $11 in later September, SWIR pulled back nearly to the 50-day moving average, but has risen for two consecutive days.

  • Percentage price oscillator (PPO) — below the signal line, but sharply began to converge yesterday
  • Volume — a few high-volume days after significant price moves would appear to be profit taking

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

Sell

gain Bottom line
4%

After solid advances last Friday, the Columbus Day market pretty much stalled, so I cashed out. The SWIR chart had begun to look weaker, in any case, with several recent above-normal volume down-days and no above-normal up-days. It's not clear whether the PPO line is going to continue converging on the signal line, or fall away again. The cautious move was to bank modest profits.