CSP's 15min chart indicates bearish trend with KDJ Death Cross and Marubozu.

The 15-minute chart for CSP has recently triggered a KDJ Death Cross and a Bearish Marubozu pattern on September 3, 2025 at 11:45. This suggests that the momentum of the stock price is shifting towards a downward trajectory and has the potential to further decrease. Sellers currently control the market, and it is likely that the bearish momentum will continue.

Title: Centerspace (CSP) Faces Bearish Momentum After KDJ Death Cross and Bearish Marubozu Pattern

The 15-minute chart for Centerspace (CSP) recently triggered a KDJ Death Cross and a Bearish Marubozu pattern on September 3, 2025, at 11:45. This technical indicator signals a significant shift in the stock's momentum towards a downward trajectory, suggesting potential further decline. The sellers currently dominate the market, and it is likely that the bearish momentum will continue.

The KDJ Death Cross is a reversal pattern in the KDJ indicator, which signals a change in the stock's trend. The Bearish Marubozu pattern, characterized by a large single candlestick with no wicks, further supports the notion that the stock price is likely to continue declining without significant resistance. This combination of technical indicators points to a bearish market sentiment for CSP.

Centerspace's recent financial performance has been a cause for concern. The company reported disappointing Q2 2025 earnings, with a 24.2% revenue drop to $518,783 and a 44.6% wider net loss of $1.27M [1]. The stock price has fallen 26.82% month-to-date, reflecting investor concerns over the company’s financial performance [1].

The primary driver of the revenue decline was a contraction in subscription income, which fell significantly below last year's level. The widening net loss indicates continued pressure on the company’s bottom line, with a per-share loss of $0.35, a 29.6% deterioration from the previous year [1]. Investors should closely monitor Centerspace's stock price trend, as the bearish signal suggests potential further downward momentum. The company's strategic initiatives may help stabilize profitability, but the current market volatility poses challenges.

While CSP Inc. has experienced early cybersecurity traction, it faces low margin growth and an uncertain profit path. Despite this, the company has delivered total returns of -34.65% since my first mention of it. CSP Inc. ((CSPI)) recently held its Q3 earnings call, revealing a generally positive outlook despite some challenges. The company showcased strong revenue growth and momentum in its Technology Solutions and AZT PROTECT segments, alongside strategic wins in new markets. However, a decline in gross profit margin and increased expenses were noted as areas of concern [2].

Revenue Growth
CSP Inc. reported fiscal third-quarter revenue of $15.4 million, marking an 18% increase over the previous year and a sequential rise from the prior quarter. This growth underscores the company’s robust performance and strategic execution [2].

Technology Solutions Segment Success
The Technology Solutions segment played a pivotal role in driving revenue growth, with a significant deal pipeline for the AZT PROTECT cybersecurity offering. This success is particularly notable in niche markets such as the container shipping industry [2].

AZT PROTECT Momentum
AZT PROTECT continues to gain momentum, with deployments in industries like steel, concrete, and lumber through Gold Star Rockwell Automation resellers. The segment also secured a significant opportunity with a global pharmaceutical company, highlighting its expanding influence [2].

Expansion in South Africa
CSP Inc. received initial orders to protect energy management and security camera systems at cell towers in South Africa. This development indicates potential for expansion in industrial IoT markets, showcasing the company’s strategic growth initiatives [2].

Strong Cash Position
The company ended the quarter with over $26 million in cash and cash equivalents, which supports continued investment in the AZT product line and shareholder dividends. This strong cash position is a testament to CSP Inc.’s financial health and strategic planning [2].

Russell 3000 Index Inclusion
CSP Inc.’s addition to the Russell 3000 Index enhances its visibility among institutional investors, potentially attracting more interest and investment in the company [2].

Gross Profit Margin Decline
The gross profit for the quarter was $4.5 million, or 29% of sales, down from 35% the previous year. This decline was attributed to higher component costs and a change in sales mix, presenting a challenge for the company [2].

Increased Expenses
Engineering and development expenses rose by 7% due to consulting on the AZT product, while SG&A expenses increased by $0.2 million due to sales and marketing costs. These rising expenses are areas that CSP Inc. will need to manage carefully [2].

Quarterly Loss
CSP Inc. reported a tax benefit of $751,000 due to a quarterly loss, highlighting some financial challenges despite overall positive performance metrics [2].

Forward-Looking Guidance
During the earnings call, CSP Inc. management provided guidance on the company’s future performance and strategic initiatives. The company achieved a revenue of $15.4 million, reflecting an 18% increase compared to the previous quarter and the same period last year. The Technology Solutions segment was a key driver of this growth, while the High Performance Products segment expanded its deal pipeline, notably with the AZT PROTECT cybersecurity offering. CSP Inc.’s cloud business exceeded expectations, with over 20 active projects in various industries. The company remains confident in its ability to capitalize on market opportunities and anticipates strong performance to continue into the fiscal fourth quarter [2].

In conclusion, CSP Inc.’s earnings call highlighted a positive outlook with strong revenue growth and strategic advancements, particularly in the Technology Solutions and AZT PROTECT segments. Despite challenges such as a decline in gross profit margin and increased expenses, the company remains optimistic about its future prospects and market opportunities. However, the recent technical indicators suggest that the stock may continue to face downward pressure in the near term.

References:
[1] https://www.ainvest.com/news/blackboxstocks-2025-q2-earnings-worsening-losses-revenue-decline-2508/
[2] https://www.ainvest.com/news/csp-underperforms-market-uncertain-profit-path-2509/