- The company operates a fleet of large container ships
- The stock slumped big this year as prices for container transport dropped and the firm subsequently ran into a cash crunch
- Yesterday and this morning the stock made gigantic leaps due to a restructuring announcement that essentially takes a bankrupcy in the medium term off the table
- We view the stock as a potential rally candidate into year-end (if and when) as it is closely linked to global economic growth hopes.
- Technically the stock although up something like 40% in the past two days has room up to around $5.20, at which point resistance comes into play.
- We may consider entering a small position in this stock later this week.
