RightNow (RNOW)

Company

RNOW 1-year chart RNOW 1-year chart

"RightNow is leading the industry beyond CRM to high-impact Customer Experience Management solutions. Approximately 1,800 companies around the world turn to RightNow to drive a superior customer experience across the frontlines of their business. As a win-on-service strategy becomes a business imperative, Customer Experience Management solutions have become essential for business success." (company website)

RNOW 6-month chart
RNOW 6-month chart

Buy

RightNow has been stuck in a sidewise channel for most of the past year. After beating Expectations handily in April, the stock was punished with a huge sell-off, but it has been climbing back up. It is again above both the 50- and 200-day moving averages. Even if it only tests the upper boundary of the channel and fails again, there is a potential for about $1.50 gain per share.

  • Price momentum (PPO) — has gone from extremely negative to modestly positive
  • Relative strength (RSI) — bouncing around the neutral line
  • Trend (ADX) — sharp strengthening recently
  • Volume — fairly steady at around 250K shares per day

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

Sell

gain Bottom line
2%

I bought RNOW with high hopes, but since my buy it has been disappointing or lackluster at best. Today for no apparent reason it jumped way up at the open and I chose to sell, taking advantage of what might turn out to be only random enthusiasm before tomorrow's earnings report.

Update
RightNow Technologies Inc.'s (RNOW, $16.04, -$0.46, -2.79%) second-quarter loss widened to $5.74 million, or 17 cents a share, from $1.76 million, or 5 cents a share, a year earlier, hurt in part by its shift away from perpetual licenses. The Bozeman, Mont.-based technology company's revenue fell 1.6% to $26.5 million from $26.9 million a year ago, hurt by lower professional services revenue.
Was I prescient, or what?

Another stock in the portfolio, MCHX, also jumped wildly at the open, but I was not quick enough on the sell button — it has since fallen back below my purchase price. You snooze, you lose.