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TRADE ALERT: Buy AOL – JMP Securities (AOL)

JMP Securities wants you to buy AOL (NYSE: AOL). According to the firm, AOL’s move to close underperforming Patch websites as a cost reduction strategy should result in margin expansion. It also notes that recent acquisitions position it to be a strong player in the online video advertising space. It maintains its Outperform rating. The stock is up 1.4 percent in pre-market trading.

AOL is up about 21 percent year to date after a sharp selloff in May. After reaching a low of $33.93, it staged a 13 percent rally but then sold off dipping below its 50 day moving average. The stock broke above its 50 day yesterday on very strong volume suggesting that the stock has room to move higher. The next level of resistance is $37.40.

[stock-tools exchange="NASDAQ" symbol="AOL" 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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