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Trucks designed to produce vibrations cross a field during a seismic survey of the Niobrara formation in Colorado. (R.J. SANGOSTI/DENVER POST/R.J. SANGOSTI/DENVER POST)
Trucks designed to produce vibrations cross a field during a seismic survey of the Niobrara formation in Colorado. (R.J. SANGOSTI/DENVER POST/R.J. SANGOSTI/DENVER POST)

Schizas’ Mailbag

Profit-taking time for Pulse Seismic investors Add to ...

Hi Lou,

I am way up on Pulse Seismic and it seems on fire currently. While I like the dividend I am wondering if it time to sell. Perhaps buy back in at a lower price.

As I bought it at $1.20 & 1.79 the dividend is rich for me. Lou what do you think?

Bill, Surrey BC

Hey Bill, Congratulations on a great score! Pulse Seismic Inc. is a leader in the Canadian seismic data library sector. The have 28,300 square kilometres of high quality 3D seismic data that generates 87 per cent of sales. The stock spiked to a 52-week high of $3.91 after catching a bounce off of support at $3.10 on May 16, 2013. But the move has been short lived and I can see why you are concerned about your profits.

More Related to this Story

A case study of the charts will provide better insight as to how best to manage this investment.

The three-year chart tells the tale of a profitable advance that started in February of 2012. The MACD and the RSI signalled the shift in momentum to the buy side as investors like yourself caught a ride on the escalator to the penthouse of profit. The uptrend line has provided support which has been tested but not breached over the last fifteen months. There has also been good support along the 50-day moving average. The aggressive advance that started on May 16 was accompanied by above average volume of 273,210 shares. On May 23 949,450 shares traded as the stock came off the highs. There were two big blocks that traded hands at $3.55 that day which represented the bulk of the action. The average daily volume over the last three months has been 84,116 shares.

The MACD and the RSI on the six-month chart both signalled the move higher last week. At this point it appears that the excitement is over. The RSI looks to be moving lower suggesting that more selling is to be expected. The last candle stick on the chart is a long legged doji which indicates that there is uncertainty as to the direction of the market. Bottom line: you are deep in profit -- take some, and as we used to say out west, go buy a hat!

Make it a profitable day and happy capitalism!

Have your own question for Lou? Send it in to lschizas@globeandmail.com.

 
Security Price Change
PSD-T Pulse Seismic 3.29 0.06
1.858 %
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