Breaking Finance News

Homex has Gained Back Half of its 61 Percent Drop Today

Shares of Mexican home builder, Homex (NYSE: HXM) are up 30 percent in late afternoon trading. There’s no specific news about the stock today but after posting horrible earnings on July 26, the stock lost 61 percent of its value.

The stock opened Wednesday down about 5 percent but throughout the day, it has risen to near session highs. Looking at the chart of the last five trading days, it appears as if the stock put in a bottom around the middle of the day on Tuesday. Since then, it has been on a tear.

It’s likely to find resistance around these levels and there’s no reason to believe that this microcap stock is a long-term buy but as a trade, it may have some room on the upside.

[stock-tools exchange="NYSE" symbol="HXM" image_height="230" image_width="350"]

Disclosure: At the time of this writing, the author had no position in the company mentioned.

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