A rubber band stock is a company that has sold off quickly and is ready to snap back. This setup can be explosive because of extreme oversold nature of the price. This setup can be particularly explosive with companies that are trading at a good value and has a stable outlook. Here are eight overstretched value companies poised for a strong rally in the coming weeks. There are several different approaches to apply the concept of a “Rubber Band Trade.” For the purpose of this list, the strategy involves the use of three separate indicators. The indicators are a 50-day, 4 ATR Keltner Chan...

Franklin Street Properties Corp (NYSEAMERICAN: FSP) is a Wakefield, Massachusetts-based REIT that is focused on infill and central business district (CBD) office properties. The company pays current annual dividend yield of 8.51% and is trading near its 2020 low. As the price is testing the lows, the company has seen the highest amount of insider buying than at any time in the previous four years. In the company’s most recent earnings report they missed analyst estimates for funds from operations (FFO). They reported FFO of $0.19 per share against estimates of $0.20 and $0.22 they earne...

It has been a rough couple of weeks for technology investors as volatility surged to levels not seen since late February. As the price for the Nasdaq 100 chops around near 11,000, some technology names began to see option activity pick up as merger news began to surface. The following three semiconductor companies saw significant option activity on Monday and saw their price moving higher on Monday’s session. The Technology sector was the second worst performing S&P 500 sector last week as sellers held on to their control. The tech-heavy Nasdaq 100 achieved correction status with gr...

Looking back over the last several years, September has been a month where insiders have typically sold more shares of Snap Inc (NYSE: SNAP) stock. It has also been a time of year, given its limited history, of underperformance. Comparing the selling so far in September against past years, the number of shares being sold is the highest since September 2017. As the price attempts to rally over the past three weeks, it may be a good time to assess the opportunity going forward. Since the beginning of the month, insiders in SNAP had sold nearly 6.2 million shares totaling over $139 million...

Oil has fallen over $7 from its high on August 26 and has been consolidating the past four days. As oil prices deliberate, the share price of energy names has been doing the same. While the surface of the energy market is quite bearish, most of these names are oversold. On Monday, the options market appears to have turned more bullish. The significant activity on energy names like Apache Corporation (NASDAQ: APA ) and Occidental Petroleum Corporation (NYSE: OXY) may be a bigger indication of a rally in energy names heading into the end of the year. Crude oil inventories had a surprise b...

The S&P 500 continued its uncertain ways last week as technology shares struggled to find any footing. While the bearishness was the story of the week for most of the market, that wasn’t true for all of the market. Thursday and Friday saw buyers in the materials space perk up and was the only S&P 500 sector to finish in the green for the week. By Friday, it was the Construction Materials along with Metals and Mining that shined. For the week, the S&P 500 finished 2.51% lower while the Materials SPDR Select Sector ETF (NYSEARCA: XLB) finished 0.1% higher on the week. It was t...

As stocks struggled to end the week in the green, it is leading investors to try to figure out where the market will be at the end of the year. As investors are looking around, trades are being made based on these expectations. For the Chinese equity markets some answers are coming in based on Friday’s option activity. The iShares China Large-Cap ETF (NYSEARCA: FXI) saw a surge in put option activity that is anticipating FXI will test its March low by the beginning of 2021. China, the world’s second-largest economy, posted a 3.2% Q2 GDP after experiencing its first negative GDP quarter ...

With the month of September only half-way through, Microsoft Corporation (NASDAQ: MSFT) is on pace for a big month of insider selling. Looking back over the past three years, Microsoft is pacing to have its biggest month in terms of sale transactions and selling volume by insiders. The selling comes at an interesting time as the tech rally fades and investors are left wondering if there is a bigger pull-back in store. Technology was the second-worst performing S&P 500 sector lest week with a 4.3% weekly decline. It was the biggest pullback since March and the only the second time si...

The route that Nikola Corporation (NASDAQ: NKLA) took to become a publicly traded company has sparked interest in Special Purpose Acquisition Companies (SPAC). These companies are considered “blank check companies” who raise capital in the equity markets to pursue potential acquisitions. In 2020, this trend continues to grow and the opportunity to trade these companies are increasing. If you’re not familiar with SPACs, it is a company that has no real operation and is formed for the sole purpose to raise capital through an initial public offering. The funds raised are being designated f...

Conversion Labs Inc (OTCMKTS: CVLB) is an online direct-to-consumer marketing and telemedicine company. That description should get you a little excited given the trend of companies that can operate in with all the pandemic policies in place. Someone that may be a little excited, based on their recent transactions, is the director that added over 100,000 shares in the past few weeks. As the price is firming up, it may be a good time to revisit the most bought OTC stock by insiders in the past month. The company maintains multiple telehealth brands under the names: Veritas MD, Rex MD, Sh...