Which One To Buy Or Sell? Capnia Inc (CAPN) and Nationstar Mortgage Holdings Inc (NSM)
New York, NY – GDP INSIDER – 05/06/2014.
This article discusses three companies: Capnia Inc (NASDAQ:CAPN) and Nationstar Mortgage Holdings Inc (NYSE:NSM)
Capnia Inc (NASDAQ:CAPN) continued its volatile trend yesterday with the stock declining 9.37% or $0.53 to close at $5.15 on light trading of 0.260 million shares, compared to its three month average trading volume of 0.825 million. The medical diagnostics and therapeutics developer has been fluctuating between $5.00 and $8.24 for the last month. Despite the volatility, the stock has gained 245.02% since the beginning of the year, far outstripping the performance of the S&P 500 which has only gained 1.48% for the same period. With RSI of 32.40 the stock can still go either way and if Capnia Inc can produce further positive news about its products, then the stock could go higher still. With the current decline it may not be the optimum time to invest in the stock but the long term potential may be there. Even so, given the volatility it is a risky investment but potentially lucrative.
Nationstar Mortgage Holdings Inc (NYSE:NSM) also plummeted yesterday with the stock hitting a new 52 week low of $19.21 before recovering to $19.51 by the end of trading session, down 25.45% or $6.66 on unusual trading volume of 10.44 million, compared to its 30 day average trading volume of 1.35 million. The stock started to plummet after it reported a 1Q15 loss of $48.3 million. The Texas-based residential mortgage loans provider posted revenue of $382.1 million in the first quarter, which missed analysts’ estimate of $536.6 million by $154.5 million. Overall, the stock has lost 30.79% since the beginning of the year. In addition, the RSI and MFI are at towards the bottom end of the normal range and close to levels that would also start to signal a reversal. The RSI is 21.30 and the MFI is currently 24. The technical indicators are all lending some credence that the stock can reverse and move higher, hold.
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