Centennial Communications (CYCL)

Company

"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 approximately 1.1 million wireless subscribers and 387,500 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 and an affiliate of the Blackstone Group are controlling shareholders of Centennial." (company website)

CYCL 3-month stock chart

Buy

I made a nice profit on CYCL earlier this year, and it is moving up again after touching up with the 50-day moving average (rising steeply) and the lower Bollinger band. Time to make some more money!

  • Price momentum (PPO) — improved since the beginning of the year, although not particularly strong at the moment after the pullback
  • Trend (ADX) — has been weakening, but buying pressure (+DI) is turning up again
  • Money flow (CMF) — has fallen off to neutral
  • Relative strength (RSI) — strengthening again and turned before reaching the previous low
  • Volume — increasing, albeit not very dramatically

Based on technical analysis, MarketEdge calls CYCL a "buy" in a "weak upward trend."

CYCL 2-month chart CYCL 2-month chart

Sell

gain Bottom line
13%

CYCL has been following the upper Bollinger band for over a week now, but there are signs of deterioration in the chart. I decided to bank a nice profit and wait for the inevitable pullback to jump in again.

Volume remains light, and money flow (CMF) has dropped off to neutral. The price has doubled in just over six months and it is near the 52-week high. Although the trend line does not appear threatened, I will wait a bit to see what happens.