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.
Stockhouse Conflict and Disclosure Policy:
Stockhouse publishing Ltd., owners and operators of Stockhouse.com, has established the following rules to ensure that there is no appearance of impropriety on the part of any Stockhouse Editorial writers ("Writers"). The content of Stockhouse Editorial articles (the "Articles") are the opinion of the Writer and any reliance on the content of these articles is at your sole risk. Our Writers are not registered investment advisors. You should not make any kind of investment decision in relation to Articles or stocks discussed in them without obtaining advice from a registered investment advisor.
Facts relied upon by our Writers are generally provided by the subject companies or gathered by our Writers from other public and/or private sources. These facts may be in error and if so, the opinions of our Writers may be materially different.
Writers may own, buy, or sell shares in public companies mentioned in their Articles, but in the Article they must prominently state their ownership position. Thus, a conflict may exist. Writers are not permitted to write Articles that attempt to benefit persons connected to the Writer, such as family or friends, except where disclosure is made in the same way as if the Writer him/herself owns stock.
Writers cannot solicit, accept, or agree to receive anything of value given or paid with the intent of influencing their Articles.
Stockhouse notifies each Writer about these rules, and we rely on the integrity of our Writers to ensure that our rules are followed.
