Clear Channel: 66% probability of getting bullish momentum
The company announced losses of $291.7 million, or 60 cents a share, on $550.8 million in revenue. By comparison, it lost $165.2 million, or 45 cents a share, on $587.1 million in revenue in the same period last year (ExpressNews). CCO's goal to sell 51% stake in a Chinese subsidiary and earn net $220 million might cheerup investors with speculation purposes. Technical analysis suggests 66% of probability to go up from nowadays $1 level (due to 2 bullish channels on the spotlight and the possibility of disengaging bullish momentum). To the ones who do not want to lose the bullish opportunity, your entry level is at $0.97. The ones who doubt and want to be sure that they will have at least a pull-back, your entry level is at $0.90. And finally, the ones who believe it is going to fall below $0.90 can enter the short position at $0.81 or at the second $0.90 level (once support now resistance).
In May 26 it was disclosed by SeekingAlpha that Ares Management is steadily buying CCO's shares since March 31, going from a 4.4% to 5.9% stake in the company. As I said before, this could also be another reason for speculative moves to upper regions.
Bullish Price Targets may vary from 1.19 to 1.40, in the very short-term (2 weeks). Probability at 66,66%.
Bearish Price Targets may vary from 0.81 to 0.71 and lower, in the very short-term (2 weeks). Probability at 33,33%.
Everything here represents my sole own opinion and analysis that can be complemented to others'. I do not hold responsibility for any of these analyses (neither my previous nor my future ones).
In May 26 it was disclosed by SeekingAlpha that Ares Management is steadily buying CCO's shares since March 31, going from a 4.4% to 5.9% stake in the company. As I said before, this could also be another reason for speculative moves to upper regions.
Bullish Price Targets may vary from 1.19 to 1.40, in the very short-term (2 weeks). Probability at 66,66%.
Bearish Price Targets may vary from 0.81 to 0.71 and lower, in the very short-term (2 weeks). Probability at 33,33%.
Everything here represents my sole own opinion and analysis that can be complemented to others'. I do not hold responsibility for any of these analyses (neither my previous nor my future ones).
Order cancelled:
Rich Smith, from the Motley Fool published on March 31: "Clear Channel stock isn't up even more for two reasons. First, market cap isn't the only thing you need to think about when weighing an investment in Clear Channel. You also need to consider the company's net debt load, which is about $6.7 billion after backing out cash on hand. Between the market cap and the net debt, Clear Channel has an enterprise value of $7 billion and looks substantially overleveraged today, even assuming it is able to use the cash from this deal to chip away at its debt load."
Therefore, I think the opportunity to speculate onthis $220 million deal to Cayman Islands-based Ever Harmonic Global passed already two months ago. Right now in premarket CCO is up +13%, but now these are just the remains of volatility and the movement upwards will not persist to 1.40. It might reach 1.20 but it is very uncertain. I didn't realise the company's multibillion debt, folks! Watch out, have a good trading, I'm out of CCO and maybe I'll reconsider it when it drops below 0.85, although I doubt so.
Therefore, I think the opportunity to speculate onthis $220 million deal to Cayman Islands-based Ever Harmonic Global passed already two months ago. Right now in premarket CCO is up +13%, but now these are just the remains of volatility and the movement upwards will not persist to 1.40. It might reach 1.20 but it is very uncertain. I didn't realise the company's multibillion debt, folks! Watch out, have a good trading, I'm out of CCO and maybe I'll reconsider it when it drops below 0.85, although I doubt so.
Comment:
Unbelievably, the company reached 1.67. Either variance or volatility might be increasing a lot though. Watch out.