DexCom (DXCM)

Company

DXCM 1-year chart DXCM 1-year chart

"DexCom™, Inc., headquartered in San Diego, California, is a company focused on pioneering technologies for the continuous monitoring of glucose in people with diabetes. DexCom has developed a short term continuous glucose monitoring system, the Seven™ System, which includes the Seven Sensor, the Seven Transmitter, and the Seven Receiver. The tiny probe-like Sensor is inserted by the user under the skin, and is held in place by an adhesive. Once inserted, the Sensor begins continuously monitoring glucose. The Transmitter sends the glucose signal from the Sensor and wirelessly transmits the data to the hand-held Receiver. The Receiver processes the glucose signal and with the push of a button, displays the userís current glucose value, as well as 1-hr, 3-hr, and 9-hr trends. The Receiver also sounds an alert when a high or low glucose excursion is detected." (company website)

DXCM 6-month chart

Buy

Dexcom spent most of the last 12 months in a steep downslide. It made a double-bottom, first in March and later in June; since then it has climbed smartly, breaking above the trend line. It has had two quarters of positive earnings surprises, and got its latest boost from news that a new CEO was named.

  • Price momentum (PPO) — picked up sharply since June, although fallen off in latest pullback
  • Relative strength (RSI) — has gone from weak to very strong; now ticking back up from neutral
  • Trend (ADX) — very strong, with buying pressure (+DI) and selling pressure (-DI) having been equalized by latest pullback
  • Volume — up since naming of new CEO

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

This looked like a brilliant buy until The Market swooned later in the session. Had I been a courageous person I might have gone shopping for more shares, but I cowered in fear and trepidation. Most of the loss has since been regained. What happens next is now anybody's guess. Earnings are due next week, and another positive surprise would do wonders.

Sell

gain Bottom line
3%

As soon as I bought DXCM, it went south — waaaay south! In today's Market madness, DXCM leaped above my purchase price, and I took the opportunity to snatch profit from the jaws of loss. Whew!