ProQuest Company (PQE)

Company

"ProQuest Company is a leading publisher of information and education solutions focused on providing innovative solutions to customers' information problems. The company serves the education and library markets through two business segments: ProQuest Information and Learning and ProQuest Education." (company website)

PQE 3-month stock chart

Sell short

In mid-December ProQuest lowered its guidance and announced that it would restate earnings from 2001 onward. The stock took an immediate and dramatic hit. Although there was a slight bounce, the trend since then has been downward.

  • Price momentum (PPO) — very slow, although picking up gradually
  • Trend (ADX) — strong, with selling pressure (-DI) well above buying pressure (+DI)
  • Money flow (CMF) — back to neutral after an outward gush
  • Relative strength (RSI) — weak and essentially flat
  • Volume — three weeks of lower-than-normal volume

Based on technical analysis, MarketEdge calls PQE a "short candidate" in a "strong downward trend."

Sell

loss Bottom line
-6%

Never has the expression no news is good news been more true than today. Shortly after I took a bath covering LEV due to a jump following company news, news that the CEO and chairman of PQE had left the company hit the wires. The Street obviously felt that he was the root of all PQE's evils, for the stock immediately jumped, triggering my stop-loss order.