GREY:ALEAF - Post by User
Post by
Kdawg51on Apr 01, 2019 11:50am
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Post# 29564012
Analysis
AnalysisOK guys, enough bashing each other and lets take a look at the company.
Here's what I see:
1. The RSI has been sitting around 36 for the last couple days which is borderline oversold (30 or lower is considered officially oversold)
2. Stochastics %K and %D crossed each other in a bearish manner on 20 march but the divergence has been getting smaller suggesting they should cross again soon prompting a bullish signal. %K today is sitting around 9.28 and anything below 20 suggests oversold.
3. The share price has fallen significantly below the bottom bollinger band signalling a reversal is in the cards sometime soon.
4. Some cons for everyone: It seems the shorts have a huge position in ALEF right now which is likely the reason why the share price has been under pressure. This is simply a technical breakdown and not actually something to do with the company. The sector took a hit last week because some companies posted pretty big EPS losses that were unexpected. It brought the whole sector down, including ALEF.
I always try to look at the bull thesis and the bear thesis and see which one I tend to have more conviction in. Right now, the bulls have a pretty good story with the Emblem acquisition, leadership in the company, and comparison to some of the other big names in the industry. The bears really don't have much to pull from, focusing mainly on the past experiences with Emblem and some of the bitterness in the merger with how the share distribution went down. I can't find anything in particular that suggests ALEF is heading for the dumps, but if anyone has something and can back it up with facts, I am all ears.