According to Miller Tabak Equity Strategist Matt Maley, the company is now “roaring back” from its fiscal crisis of $6.66. He said:
“We were able to hold that 2009 low and that should … limit the downside at least over the near term. However, we’re going to have to see a lot more work and a lot more action in this stock before we can say the worst is behind it for sure [with the stock jumping to $7.72 per share]. The stock fell so far, so fast that any resistance level, for instance, its 50-day moving average and its trend line for 2018, they are much higher than where the stock is now, 25 to 35 percent higher. When you want a stock to really confirm that the worst is behind it, you want to see it break a few resistance levels.”
CEO of Chantico Global Gina Sanchez said:
“We’ve seen a pretty big Hail Mary in terms of their determination to restructure the firm and to restructure the outlook for where they’re going to put their focus but that’s something that takes years to build out. For the time being, it has to survive the negative headlines, and a liquidity crunch is not the kind of negative headline that you want to have, an SEC probe is not the kind of negative headline you want to have, so we’re not out of the woods.”
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