RizeSenpai

COMM: Bullish Divergence Holding at $4.00 w/Improving Financials

Long
NASDAQ:COMM   CommScope Holding Company, Inc.
I mostly became interested in this stock due to the sector and the recent shift in it's quarterly profit margins; but the stock price did not reflect what I saw in the recently rising profit margins so upon closer inspection it became somewhat apparent that the debt incurred by the company has been utilized to finance their day-to day operations and that these debts have been very heavy and this is likely what's been weighing down on the stock's price, especially because for a long period of time, they have been operating without generating any profits relative to the debts they've incurred.

But recently for the last few quarters a notable shift has occurred, and they are now showing signs of newfound profitability, thus signifying that those earlier debts may have been worth it.

It is also nice to see that they have not resorted to diluting their shareholders, as many stocks with this sort of price action and debt tend to do.




If this Weekly Bullish Divergence plays out, we could see it make a run to the 61.8% Retrace

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