Just a fun followup on my last week’s mini rant against analysts and with no sense of irony, I introduce to you, a mysterious “Contributor” at Forbes.
In trading on Thursday, shares of Sony Corp (NYSE: SNE) entered into oversold territory, hitting an RSI reading of 27.6, after changing hands as low as $28.22 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 62.5. A bullish investor could look at SNE’s 27.6 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of SNE shares:
Looking at the chart above, SNE’s low point in its 52 week range is $19.90 per share, with $34.17 as the 52 week high point — that compares with a last trade of $28.29.
What do I do? Buy Sony stocks? Sell Sony stocks? If only Jim Cramer were here to set me straight. Jokes aside though, mystery pieces like this can have lasting implications with millions, if not billions lost from a company’s valuation that can affect everyday people. On the end of the spectrum, it’s also a great way to send a stock price higher for just a tad and make a quick buck. I’m not saying either are taking place here, but I’m also not saying things like this don’t happen more often than they should.
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