Stocks Declining: DragonWave, Inc.(USA) (NASDAQ:DRWI), Platinum Group Metals Limited (USA) (NYSEMKT:PLG)

Posted by Chris Bell May 13, 2013 0 Comment 1210 views


Northern, WI 05/13/2013 (GDPInsider) –  DragonWave, Inc.(USA) (NASDAQ:DRWI) is down 7.84% in today’s trading session after opening at 2.32. The stock closed previously at 2.41 and has a range of 2.20 and 2.38. Volume is 22.86K, which is down on average trading volume of 214.38K.

DragonWave is a a developer of broadband equipment and supplies a large pool of businesses with the wireless Ethernet equipment used in Internet protocol (IP) networks. The company announced its Q4 2013 fiscal results on May 8, 2013 and the numbers caused some disquiet among analysts and investors. DRWI saw a drop in gross margin for the fourth quarter—5.3% compared to the 18.6% recorded in the quarter prior. Indeed the loss was a big enough concern that DragonWave CFO, Russell Frederick spoke directly to it during the briefing. “During the fourth quarter, several factors contributed to the low gross margin including the inventory provision, a larger mix of account incentives, and higher than expected manufacturing and logistics costs. While some of these pressures will continue in the short term we expect to return to Q3 FY13 gross margin levels over the next two quarters,” assured Frederick.

DRWI is trading 21.46% above its 50-day simple moving average and the stock has a RSI of 57.07.

Is DRWI a solid investment at these levels? Get exclusive data and trends here.

Platinum Group Metals Limited (USA) (NYSEMKT:PLG) opened the day’s trading at 1.07, down on its previous close of 1.08. The stock is down 7.41% on trading volume of 831.65K, a figure which puts trading activity above the average trading volume of 532.79.

Platinum group focuses on the mining and exploration of platinum and has operations in South Africa and Canada. The company announced last month that its 74% stake in Maseve Investments 11 Pty Ltd has been duly transformed into a binding life of mine concentrate off-take agreement. This agreement will see Platinum effectively running WBJV Project 1 Platinum Mine along with Platinum Mines, a subsidiary of Anglo American Platinum Limited.

PLG has been in steady decline since the start of April 2013 and although news of the off-take agreement did cause a slight rally, the stock is now trending southward. PLG is down 24.10% on its 50-day simple moving average and the stock has a RSI of 28.44, indicating of course that it is heavily oversold. Analysts have set a target price of 1.79, however.

How Should Investors Trade PLG Now? Get exclusive insights and updates here.

 

 

Disclosure:

WallStreetAnalyzed.com is not a registered investment advisor and nothing contained in any materials should be construed as a recommendation to buy or sell securities. Investors should always conduct their own due diligence with any potential investment. Please visit WallStreetAnalyzed.com website, for complete risks and disclosures.

 

 


About Chris Bell

Chris Bell is an investing reporter for GDP Insider. Chris covers financial markets and Wall Street, concentrating on developments affecting individual investors and their portfolios. Chris is also over consumer reporter and covers a wide variety of issues ranging from housing to immigration to urban poverty. Chris graduated from the University of Scranton with a degree in Communication and Philosophy. Chris's diligent investigations earned him the honor of being named "Best Reporter" once by the Headliners Foundation of Texas and once by the Houston Press Club.

View all post by Chris Bell Visit author's website

Write Your Comment