Velti Attempts To Break Downtrend
Velti (VELT) traded around $8.6 prior to guiding up on earnings at the end of May. The stock has been crushed since then due to A/R concerns that never actually turned into major concerns. As the company clarified on a analyst call, the receivable numbers are consistent with the ad agency industry.
Regardless the stock has remained weak with it again bouncing off key support around $6 yesterday. From the finviz.com chart below, it sure appears that the 10% move in VELT today is an attempt to finally break that downtrend.
The amazing part is that this stock was over $14 back at the end of March and the mobile ad industry continues to show signs of major growth. VELT could just as quickly return to those levels and higher if the 'risk on' strategy returns.
Disclosure: Long VELT. Please review the disclaimer page for more details.
Regardless the stock has remained weak with it again bouncing off key support around $6 yesterday. From the finviz.com chart below, it sure appears that the 10% move in VELT today is an attempt to finally break that downtrend.
The amazing part is that this stock was over $14 back at the end of March and the mobile ad industry continues to show signs of major growth. VELT could just as quickly return to those levels and higher if the 'risk on' strategy returns.
Disclosure: Long VELT. Please review the disclaimer page for more details.
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