Sonic Solutions (SNIC)

Company

"Sonic Solutions enables the creation, management, and enjoyment of digital media content through its Hollywood to Home™ products, services, and technologies. Sonic's products range from the advanced authoring systems used to produce Hollywood DVD and Blu-ray Disc titles to the award-winning Roxio-branded photo, video, music, and digital-media management applications. Sonic's patented technologies and AuthorScript® media engine are relied upon by leading technology firms to define rich media experiences on a wide array of consumer electronics, mobile devices, set-top players, retail kiosks, and PCs. Always an innovator, Sonic has taken a leading role in helping professional and consumer markets make the successful transition to the new high-definition media formats and, through the Qflix™ platform, Sonic is defining new models for the digital distribution of Hollywood entertainment." (company website)

snic(4-1)
SNIC 4-month chart
snic(4-1)_1yr
SNIC 1-year chart

Buy

5 November 2009. Sonic started to jump two days before earnings were released (obviously somebody told). It was a strong positive Surprise compared to Expectations. After reading the earnigns release, I scooped up shares in after-hours trading. Resistance is at $6.52, and this is the third go at that level.

  • Percentage price oscillator (PPO) — crossed sharply above signal line on heavy volume
  • Volume — price jump was on very heavy volume

Based on technical analysis, MarketEdge calls SNIC a "hold" with "mildly deteriorating conditions."

Sell

gain Bottom line
14%

6 November 2009. Sonic boomed in today's session, up nearly $1. Lest this good thing dribble away, I immediately put in an order for a trailing stop if the price dropped. It did, and my position was closed with a tidy profit for a 24-hour hold.

bird-in-hand_120x90

Of course, since the sell the price has bounced back up even more, but the bird in the hand looked awfully good.