But bad timing caused the better-than-expected sales to go mostly unseen.
UTStarcom Inc. (NASDAQ: UTSI, Bullboard) is a telephone and telecom designer and manufacturer with significant operations in China but is based in California. This one has been plagued for longer than most would like to remember. This stock recently gave the best fresh news it could have given: two weeks ago it raised guidance on much better than expected sales.
Shares rose initially on the news but the myriad of earnings releases and the timing of its news with other major tech mergers and announcements caused it to get overlooked. Last week it made up the difference and ended up being a 50% gain from trough to peak. The stock has now pulled back more than 10% from Friday's highs. While it is impossible to pick the last penny, particularly when the market is weakening, this looks like traders and investors are going to get a fresh new opportunity to get in. This latest round of selling today and yesterday looks nothing more than profit taking after a 50% run in under two weeks.
This last week it caught up to where it should have, and pullbacks are likely an opportunity. But the company is one of those former high-flying stocks that fell from grace and has literally spent years in the dog house. Because of the stock's past, many traders are still taking a “wait and see” attitude. This is a true fallen angel and it has a large short-selling crowd behind it that hasn't fully covered at all.
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