Centennial Communications (CYCL)

Company

"Centennial Communications, 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." (company website)


CYCL 1-year chart

Buy

CYCL 2-month chart CYCL 2-month chart

I took advantage of this morning's steep sell-off in the market to buy into CYCL again. CYCL's shares were also driven down by an announcement that 10 million additional shares would be offered to the market at $8.05 per share.

  • Price momentum (PPO) — increasing in both the short- and long-term
  • Trend (ADX) — strong, with buying pressure (+DI) well above selling pressure
  • Money flow (CMF) — back to neutral
  • Relative strength (RSI) — strengthening steadily
  • Volume — recovering after the 52-week low

Based on technical analysis, MarketEdge calls CYCL a "long" that is "overbought" in a "mildly deteriorating condition."

Sell

gain Bottom line
13%

CYCL opened up today, but bounced around to close quite a bit lower than the day before. Although MarketEdge still calls CYCL at "strong buy" in a "weak upward trend," I took this as my signal to sell and bank a nice profit before it dribbles away in a pullback. It has traded up steadily for the entire month of April to date, and I think it is likely it will come back closer to the moving 50-day average.