Centennial Communications (CYCL)

Company

CYCL 1-year chart CYCL 1-year chart

"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 397,800 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 6-month chart
CYCL 6-month chart

Buy

In the first three months of 2007 I made nice profits on three lots of CYCL (1, 2, 3), and I figure it's time to make some more money on the company. It has just touched up with the 50-day moving average again and the uptrend is solid.

  • Price momentum (PPO) — slowed recently, but has stabilized
  • Trend (ADX) — buying pressure (+DI) has just crossed back above selling pressure (-DI)
  • Relative strength (RSI) — increasing again after a decline
  • Volume — much higher in last month, since earnings

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

Sell

gain Bottom line
17%

CYCL has been stretching out the upper Bollinger band for two weeks now, and buying pressure is starting to slack off. Since I was sitting on a very tidy profit, I decided to cash in my chips before it has a chance to pull back.

The chart is still very strong, and I expect to buy back in on the next up-cycle.