In searching for trading and investing opportunities I came across FTWR - Google Finance" href="http://www.google.com/finance?q=ftwr">FiberTower Corporation FTWR this morning. The above chart shows a hefty slide in the stock price over the past few months and recent lows of 80c or so were made.
Then late last week, the stock price took off and the rally in the stock price was also backed up by a surge in trading volume. On Thursday the share price opened at 80c and rallied to a close of $1.11. On Friday, the stock opened at $1.25 and then rallied to a high of $1.98 before closing at $1.52.
Over the past two trading days – there has been a near doubling in price!
What has caused the sudden surge in the stock price is a still a big mystery to me. The company provides back haul services to wireless carriers. With the growing use of wireless devices like smart phones and tablet computers – one can safely assume that the company is in a growing market.
Their latest quarterly report shows that the company is still recording losses. Outstanding debt was at a whopping $166.7m so it's clear that the company is struggling under a hefty debt load. However, revenue grew strongly at 23% to $21.3m.
Their financials explain the hefty sell-off in the stock over the past few months but what's the reason for the sudden surge in buying activity? Is there a positive development just around the corner?
At the very least this a stock to keep an eye on this morning.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.