San Diego, CA 7/7/2009 5:30:39 AM
Monday's Most Disliked Stocks - SIGM, FNSR, BRCD
A consensus dislike for Sigma Designs Inc., Finisar Corp., and Brocade Communications Systems, Inc.
Sigma Designs Inc. (SIGM), Finisar Corp. (FNSR), and Brocade Communications Systems, Inc. (BRCD) were among Monday's most-disliked stocks. A combination of technical and sentiment factors have defined Sigma Designs Inc., Finisar Corp., and Brocade Communications Systems, Inc. as three of the market's weakest performers coupled with particularly negative or pessimistic opinions from investors. The report was compiled by Small Cap Network.
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Here is a large portion of the article:
"Sigma Designs Inc. (SIGM)
The 6.7% tumble for the day sent a loud and clear message out that sitting on a ton of cash ($5.40 per share, with the stock trading at $14.31) isn't enough of a reason to hold it blindly. Well, there's that, or perhaps it was the run from March's low of $2.00 to the recent peak of $8.00 that's prompted the sudden change of heart. There are a lot of profits to be taken after all.
There was no news, but the underground buzz is that bad news - perhaps a warning - is on the way. That's just the word from the message board pumpers and bashers (bashers in this case), though they have been known to be right on occasion.
Either way, SIGM looks like a breakdown candidate now.
Finisar Corp. (FNSR)
There was no news behind Finisar's 7.5% tumble either; perhaps downward momentum was enough to keep the sellers active, and inspire new sellers to jump on the bandwagon... FNSR has fallen from $0.89 to $0.49 over the last three weeks. Support is nowhere in sight.
In the near-term we have to think this penny stock's implosion is creating a bearish self-fulfilling prophecy. Longer-term (if the analysts are anywhere close to right), we feel Finisar could be an exceptional value.
Trade for the short run, invest for the long run, and always know the difference... especially with penny stocks.
Brocade Communications Systems, Inc. (BRCD)
Traders fell out of love with Brocade despite a spot of good news this morning. Brocade's routers were chosen by Denit Hosting. No word on the dollar amount, but it's better than a sharp stick in the eye.
So why the 4.8% dip and a gathering of a raucous crowd with pitchforks and torches ready to lay into Brocade? This is likely to be one of those cases where a stock was just in the wrong place at the wrong time. Jo Biden's ill-advised wording coupled with an overbought BRCD chart just popped a bubble that was overdue for popping.
As for what's next, the message boards stink of desperate bullishness.... a fairly good contrarian indicator. Here's one of the posts for Brocade that we found particularly amusing..."
The rest of the report can be accessed by using the link at the top of this news release.
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