Are These Stocks Undervalued? Enova International Inc (ENVA) and Mad Catz Interactive Inc (USA)
New York, NY – GDP INSIDER – 03/27/2015.
This article discusses two companies: Enova International Inc (NYSE:ENVA) and Mad Catz Interactive Inc (USA) (NYSEMKT:MCZ)
Enova International Inc (NYSE:ENVA) took a steep dive yesterday with the stock losing 17.98% or $4.28 to close at $19.52 on very heavy trading of 1.843 million shares, compared to its three month average trading volume of 0.216 million. The technology and analytics company specialized in online lending, began to fall after it announced its support for the Consumer Financial Protection Bureau (CFPB) aims to set out a well regulated market for short term consumer credit. The new rules should provide a boost to Enova International Inc as its analytics and technology will key in implementing the new rules, but the CFPB has not committed to any particular direction at this time and is still considering options. As these rules are such an important part of next year’s potential revenue, until the CFSB makes a clear decision, Enova International Inc share price is likely to fluctuate, making it a risky but potentially lucrative hold.
Mad Catz Interactive Inc (USA) (NYSEMKT:MCZ) continued to fall yesterday with the stock losing another 3.11% or $0.0117 to close at $0.3646 with more than 1.302 million shares changing hands, compared to its three month average trading volume of 0.303 million. Shares in the designer and distributor of accessories for videogame platforms started to fall on Wednesday, when it announced that it has agreed with specific institutional investors to sell 8.980 million shares of common stock as well as attached warrants to purchase an additional 4.490 million shares. One share and one warrant will be sold together as a unit and each unit will be priced at $0.41 each. With the stock having just experienced a bearish MACD crossover and Mad Catz Interactive Inc now trading near its’ 52 week low of $0.35, the stock looks undervalued. Once the transaction is complete the shares should rise again, making it a hold and potential buy at this price.
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