IRIS International (IRIS)

Company

IRIS 1-year chart IRIS 1-year chart

"IRIS International, Inc. is a leader in in-vitro diagnostic urinalysis systems, digital imaging software development, sample collection, sample processing and small benchtop centrifuges and supplies for chemistry, coagulation, cytology, hematology, and urinalysis for the clinical and veterinary markets. The Company operates through its Iris Diagnostics division, and two subsidiaries: Iris Sample Processing (formerly Statspin®) and Advanced Digital Imaging Research, LLC (ADIR)." (company website)

IRIS 6-month chart
IRIS 6-month chart

Buy

In the first quarter of 2007, I had mixed results with two lots of IRIS (1, 2), and I'm hoping the third time is the charm. After peaking in mid-April, IRIS pulled way back, breaking through the lower Bollinger band, to touch up with the 50-day moving average. It is now back near the 1-month average and seems to be on more solid footing.

  • Price momentum (PPO) — overall trend is acceleration, but with ups and downs; stabilizing after latest dip
  • Trend (ADX) — buying pressure (+DI) is slightly less than selling pressure (-DI), but could be about to cross over
  • Relative strength (RSI) — trending up long-term, strengthening again after recent dip
  • Volume — recovery from latest sell-off was on higher than normal volume

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

Sell

gain Bottom line
6%

IRIS hit another 52-week high yesterday, and out of a sense of relief I closed the position today to bank a respectable profit. The stock is up $2 in less than a week, and although volumes the last few days have been solid, the average volume continues to drop. Before this rally, it spent a long time languishing below the 50-day moving average. I find that and the lack of volume worrisome, and relative strength looks ready to stall.