After Newsmax's Recent Dead Cat Bounce, Could the Stock Sink Even More?
Investors have plenty of colorful adages and phrases. "Don't try to catch a falling knife" and "pigs get slaughtered" come to mind. So does another morbid one: "dead cat bounce."This last phrase is used to describe a stock that rebounds temporarily amid a general decline. Like a dead cat falling from a high perch, it bounces a little only to return to the ground.I think Newsmax (NYSE: NMAX) stock's recent jump was a textbook example of a dead cat bounce. Shares of the news organization soared more than 20% last week, only to quickly give up all of the gains. Newsmax stock is now down around 74% since its initial public offering on March 31. Could it sink even more?Continue reading
Investors have plenty of colorful adages and phrases. "Don't try to catch a falling knife" and "pigs get slaughtered" come to mind. So does another morbid one: "dead cat bounce."
This last phrase is used to describe a stock that rebounds temporarily amid a general decline. Like a dead cat falling from a high perch, it bounces a little only to return to the ground.
I think Newsmax (NYSE: NMAX) stock's recent jump was a textbook example of a dead cat bounce. Shares of the news organization soared more than 20% last week, only to quickly give up all of the gains. Newsmax stock is now down around 74% since its initial public offering on March 31. Could it sink even more?
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