AMR, COOL, FTWR: Bounce back Candidates for Next Week
What does a troika of losing stocks such as AMR Corporation (NYSE: AMR), Majesco Entertainment Co (NASDAQ: COOL), and FiberTower Corporation (NASDAQ: FTWR) mean for shareholders? Well, given the correct market conditions they could actually be outperformers. These stocks have already fallen more than 20 per cent in the last week and remain strong bounce back candidates for the week ahead. With the S&P 500 trading near its important technical levels, selected equities could see a sharp snap up recovery in the next week.
Shares of the troubled airline company AMR Corporation (NYSE: AMR) would be strong contenders for a bounce back. The stock has lost nearly 37 per cent in market capitalisation in the last month or so. I see the stock rebounding primarily because of two reasons – first because of a reversal in global crude oil prices which could bring down the cost of air turbine fuel (ATF) and second, because the stock has already lost substantial value in recent times. Nearly 15 per cent of the shares are shorted and positive market conditions next week may create a short squeeze situation. Nevertheless, the stock remains in an attractive range at $1.75.
Majesco Entertainment Co (NASDAQ: COOL) is another stock where investors must have better discovered the physical phenomena called “gravity”. The stock has lost nearly 10 per cent in the last 10 days and that too on good volumes. All this is despite the fact that there is fundamentally nothing wrong with the stock or the company. Naturally, the stock will bounce back to its earlier high levels of $3.5 and it may very well be next week. The stock currently trades at $3.
FiberTower Corporation (NASDAQ: FTWR) remains a hard sell after all the beating the stock got in the last couple of days. Recent news developments around the company, especially the decision to axe 40 per cent of its workforce, are difficult to find favour in media. However, these developments make sense from a business point of view at the same time. All said and done, the stock has a book value of nearly $5.4 per share and the current market price of less than a dollar is simply, too steep a discount.
Do NOT buy or sell FTWR, AMR or COOL until you have read everything.
SmallCap Network provides comprehensive research and opinions on FTWR, AMR and COOL. |
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| Date: | June 19, 2013 | |
| Price: | Free | |
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