Overview:
Be fearful when others are greedy and greedy when others are fearful.
Fear appears to be the case with $HEAR bulls at this point and greed with bears. Is there a hope for bulls? Let's see.
There is a 75% short interest in this stock right now. If this isn't a world record it should be close to one.
But shorts are not the ones hurting right now, they are in the black. Bulls (those that are left) on the other hand are under stress.
I noticed that short interest was already piled on as it was approaching earnings.
I believe the earnings is probably not exactly to likings of neither bulls nor bears.
Bears couldn't afford to lose as the earnings announced. Too much was at stake for them.
So, as the earnings came out bears took advantage of post market to push this down that along with some weak hands created that big gap that we saw on the next opening. $HEAR CEO mentioned something similar in conference.
The subsequent drops appears to be follow through of the gap down when sentiment took the u-turn for some as fear took over.
Fundamentals:
On fundamental side at this moment we're at P/E of 3.62x which is very low compared to similar in industry. For instance Logitech has P/E ratio of 26.70x and EPS is 1.44 as of this writing.
Using the conservative EPS guidance 0.9 of $HEAR this could be priced at/around $24 if we use similar pricing as Logitech.
If we go by this, I don't believe we get buy opportunities like this often.
Technical:
Technicals are bad right now.
But on smaller time frames things are starting to turn around.
If you look at this hourly graph the green volume has picked up since the second wave down to 12ish region.
It has formed a falling wedge right now which is a bullish sign.
The last candle before close today has significantly more volume but very thin body which indicates that a fight went on between bears and bulls there but it went slightly in the favor of bulls and candle close green.
MACD is about to get a bullish divergence.
RSI is turning positive but it has faced resistance last few hours here but with MACD divergence we may see the resistance break.
My Position:
I have started to long today using April call options.
Disclaimer:
The information is to be used for educational purposes only. Not a recommendation to buy or sell.
Be fearful when others are greedy and greedy when others are fearful.
Fear appears to be the case with $HEAR bulls at this point and greed with bears. Is there a hope for bulls? Let's see.
There is a 75% short interest in this stock right now. If this isn't a world record it should be close to one.
But shorts are not the ones hurting right now, they are in the black. Bulls (those that are left) on the other hand are under stress.
I noticed that short interest was already piled on as it was approaching earnings.
I believe the earnings is probably not exactly to likings of neither bulls nor bears.
Bears couldn't afford to lose as the earnings announced. Too much was at stake for them.
So, as the earnings came out bears took advantage of post market to push this down that along with some weak hands created that big gap that we saw on the next opening. $HEAR CEO mentioned something similar in conference.
The subsequent drops appears to be follow through of the gap down when sentiment took the u-turn for some as fear took over.
Fundamentals:
On fundamental side at this moment we're at P/E of 3.62x which is very low compared to similar in industry. For instance Logitech has P/E ratio of 26.70x and EPS is 1.44 as of this writing.
Using the conservative EPS guidance 0.9 of $HEAR this could be priced at/around $24 if we use similar pricing as Logitech.
If we go by this, I don't believe we get buy opportunities like this often.
Technical:
Technicals are bad right now.
But on smaller time frames things are starting to turn around.
If you look at this hourly graph the green volume has picked up since the second wave down to 12ish region.
It has formed a falling wedge right now which is a bullish sign.
The last candle before close today has significantly more volume but very thin body which indicates that a fight went on between bears and bulls there but it went slightly in the favor of bulls and candle close green.
MACD is about to get a bullish divergence.
RSI is turning positive but it has faced resistance last few hours here but with MACD divergence we may see the resistance break.
My Position:
I have started to long today using April call options.
Disclaimer:
The information is to be used for educational purposes only. Not a recommendation to buy or sell.
Still holding my April calls.