Trader's Watchlist: FUEL Long (50.14 -2.17)
I think the markets have bottomed for now. I'm taking a shot on a snap back rally in this heavily oversold name. The company has a new generation ad placement algorithm and had been well received by the market. At the peak a couple weeks ago they pre-announced materially better than expected earnings results. But that was over 30% ago!
What happened? The company crushed holders with an abusive share offering, 2.75 MM new shares plus 3MM that were locked up into a float of merely 12MM (there are 33 MM shares outstanding). An overreaction to the downside like this during a market correction should be expected. But I'd also expect a snap back to at least the 50 MA as the market heals a bit. That's 5 points.