Posted on August 15, 2022
Over the last several weeks, we’ve experienced a bear market rally that’s been swift, sharp and in the case of numerous individual stocks, absurdly overdone.
A good dozen such issues came up on our radar of late, and we’ve selected what we feel is the best of them to trade today.
That’s not to say the general rally has come to an end. Indeed, it may still have legs.
But this stock, at least, is punch drunk and wobbling, and in our view, looks ready for the hammer.
ATI Inc. (NYSE:ATI) is a specialty steel producer in a trendy market – aerospace and defense.
And since war is ‘in’ these days, one would expect to see a stock like ATI’s to rise.
But by how much?
And is there no limit?
It’s not only the 56% gain in the last seven weeks that caught our eye. No, no…
Rather, the 32% leap that occurred over more or less the last week (!) provided the crème fraîche frosting on this old banana cake.
Here are the fundamentals –
In short, it doesn’t appear so favorable for the bulls on the fundamental front.
So what’s to get thrilled about…?
The downside awaits!
If Hashem wills it.
With kind regards,
Hugh L. O’Haynew