On Friday, The Bowser Report issued a daily mover alert on LightPath Technologies (LPTH), which gained more than 20% for the day.
The selling wore off for LPTH following the StreetSweeper’s negative article. Investor’s responded to a share price that fell $0.72 (-23%) from Monday’s close by buying today on heavy volume.
As we said in Tuesday’s daily alert, the StreetSweeper article disclosed that the owner’s of StreetSweeper have a short interest in LPTH. Therefore, they stood to benefit from the stock’s decline. Call it what you will, but the negative article included heavy speculation and the panicked selling it caused was bound to end.
LPTH has a current Bowser Rating of 9, which pits the company in Category 2, as long as it stays under $3. Now climbing back towards its 52-week high, its important to not chase the stock upward when entering a new position. Chasing diminishes gains. However, we do think this is still a good stock with room to run in the near future.
LPTH will report its earnings on February 4. That could be a catalyst for the stock to climb (or fall depending on the results).
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