MLR - AMWD continuation pocket pivot in action
We originally reported on AMWD on February 4 when it had a pocket pivot (see archives). Today, it had a continuation pocket pivot on a strong earnings report.
If one bought a position on February 4, one could easily add here knowing their average cost is below where the stock is currently trading. This is psychological strength.
Of course, one could initiate a starting position here, but may wish to buy a smaller size since the stock is up over 10% on the day at the time of this writing. Further, it is a small cap stock so subject to greater volatility.
Fundamentals remain strong with earnings positive over the last 3 quarters, having been negative for many quarters prior. It is a sign of strength when a company that has had negative earnings for so long finally turns positive for at least 3 quarters. Further, industry group strength is ranked 12th, sales have been accelerating over the last 4 quarters, and institutional sponsorship has increase over the last 5 quarters.
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