Hot Penny Stock?
I was running through my screens the other day and I noticed something interesting
.
EarthLink (ELNK) has had a big move in the last week or so and its clearly breaking out of its trading range.
Just look at the chart the stock for the last few months hovered between $3.80 and $3.10
And now its trading above $4.00, and was as high as $4.30.
So I wanted to dig a bit Whats going on here?
Well, on August 4th, the company announced their quarterly numbers.
And honestly, I dont see it
When I look at their press release, I see a company who has:
- Flat revenue
- High expenses
- Growing capital expenditures
- And a HUGE net loss
Now, the company still has $98 million in cash on the books but its losing money.
Like I said, I dont see it and dont get caught up in the market movement of this stock How long until it falls back to earth? My guess is not long.
Youve been warned.
Category: Hot Penny Stocks
