It's been a very busy day for a handful of small cap stocks, but three in particular have stuck out. Pacer International Inc. (PACR), Strategic Hotels & Resorts, Inc. (BEE), and Anthracite Capital, Inc. (AHR) have formed some interesting 'trading' charts in the shadow of recent news. Here's a discussion of each, along with what all three may have in store for investors.
Pacer International Inc. (
PACR), or any other transportation stock, is no stranger to the scrutiny of this website, though we'll again point out there's a bizarre disparity between the different segments of this group.... air and train names seem to be doing fine, while trucking and marine stocks are still struggling.
Pacer is one of the train and air group (mostly). And accordingly, the stock's been doing very well of late despite a Q2 loss of 21 cents per share, and despite a 27% dip in revenue.
What gives? The company anticipates a return to profits in the seen half of the year. Though most of the economic green shoots are real, the expectation may be overly optimistic.
Nevertheless, a rising stock is a rising stock, and is a good investment as long as it keep rising. To that end, PACR has attracted a massive number of followers over the last five weeks. That amount of volume suggests the rebound effort has legs, even though the stock's getting trashed today.
Traders should still pick and choose their entry spots, and bear in mind that $5.66 is an important make/break line.
----------------------------------------------------------------------
Sign-up for Free to Receive Future Commentary
and Trading Alerts on BEE, PACR, and AHR.----------------------------------------------------------------------
Though
Strategic Hotels & Resorts, Inc. (
BEE) hasn't posted any news over the last few days, that hasn't prevented the message boards from buzzing about the stock - most of it bullish (and probably deserved).
The last we heard from Hotels & Resorts was Q2's earnings a couple of weeks ago. They weren't great. The hotel chain lost 3 cents per share against a gain of 48 cents a year ago. Analysts only expected a loss of 2 cents.
The problem is, analysts don't expect to see a gain anytime soon... and they overestimated the last couple of quarters. RevPAR (revenue per room available) was at worst-ever levels for the hotel company.
The oddity is the chart. BEE shares popped above their 200 day moving average line for a couple of days last week as a wedge-shaped chart takes shape. It should be a bullish event. But, it hasn't been yet.....the stock's back under the 200 day line today, and headed for the lower (support) edge of the triangle.
Though a break under support is the final clue needed, the bears seem to still have the momentum despite the sideways movement over the last few months.
Despite Friday's effort to rebound,
Anthracite Capital, Inc. (
AHR) just can't shake off last week's downgrade. Of course, the $110 million loss last quarter doesn't exactly inspire a bullish opinion. On an operating basis, Anthracite earned 7 cents per share versus expectations of a 4 cent gain. The bad news is, the company took an actual loss of $1.39 per share last quarter, on charges.
The fact that bankruptcy is a real possibility is a given part of the equation... the near-term worry for the stock is the wedge-shaped chart that's quickly coming to a point.
Since the overall trend is bearish - and the last few months have been a blip - the expectation is the downtrend is apt to resume when the wedge breaks.
If you'd like to know of any changes in our opinion of these three stocks (or if we officially recommend them as trades), be sure to sign up for free newsletter today. It's delivered 2 to 3 times per week.
