Big Small Cap Losers: Oclaro, Inc. (NASDAQ:OCLR), FreeSeas Inc. (NASDAQ:FREE)
Northern, WI 05/08/2013 (GDPInsider) – Oclaro, Inc. (NASDAQ:OCLR) is facing strong headwinds today, trading down 22.79%. The stock opened the day at 1.10 and has a range of 0.99 and 1.11 on volume of 4.74 million. The huge surge in activity coupled with the steep drop in price today suggests that investors weren’t keen on the earnings figures reported yesterday (May 7, 2013).
The earnings numbers were low in some key areas. Revenues for Q3 2013 fell to $141.6 million, a decline from the $159.5 million recorded in the previous quarter. GAAP gross margins were also down and the company reported a figure of 9% for Q3 fiscal quarter. This was a sizable drop from the 14% GAAP gross margin recorded in Q2 2013. Oclaro also reported a GAAP operating loss of $28.9 million, adding to the negative reception. Alain CEO and president, Alain Couder was quick to allay fears and told investors that, “Our financial results were at the lower end of guidance for the third quarter, in the face of continued softness in the telecommunications market. Our sales declined further than expected, which drove a higher loss compared with the prior quarter.”
Is OCLR a solid investment at these levels? Get exclusive data and trends here.
FreeSeas Inc. (NASDAQ:FREE) continues to swim in choppy waters, currently trading down 17.06%. The stock opened the day’s trading at 0.75, a slight jump on the previous close of 0.68, however, the good start hasn’t been sustained. FREE has a range of 0.68 and 0.81 with volume of 512.18K.
FreeSeas Inc. operates 9 vessels in the drybulk commodities sector and has been facing headwinds in the markets. The stock’s technical chart shows a relatively flat but southward sloping trend which began in March 2013. FREE is 43.89% below its 50-day simple moving average and 37.65% below its 20-day simple moving average. The stock is down 93.50% on its 52-week high of 10.50 but up 13.83% on its 52-week low of 0.60. ROE is down 131.51% and ROI down 75.78%.
The stock has a RSI of 21.90 indicating that it is heavily oversold. No definitive target price has been set suggesting that the upswing may not be clear on the horizon for many analysts.
Should Investors Trade FREE Now? Get exclusive insights and updates here.
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