Sinking Small-Caps: Ambarella Inc, Tuesday Morning Corporation, and Etsy Inc

Ambarella Inc (AMBA), Tuesday Morning Corporation (TUES), and Etsy Inc (ETSY) are among the many sinking small-caps

Aug 21, 2015 at 2:29 PM
facebook twitter linkedin


The global stock market is taking it on the proverbial chin today, and the Russell 2000 Index (RUT) -- a measure of small-caps -- is making headlines. The RUT breached the key 1,200 level yesterday, and market pundits have noted the index has been dawdling around "correction" territory (down more than 10% from its June 23 high). Some of the notable RUT members in the red include semiconductor concern Ambarella Inc (NASDAQ:AMBA), retailer Tuesday Morning Corporation (NASDAQ:TUES), and e-commerce rookie Etsy Inc (NASDAQ:ETSY).

AMBA was last seen 6.9% lower at $90.28. The stock is set to end the week south of its 10-week and 20-week trendlines for the first time in more than a year, and settle in double-digit territory for just the second week since late May. 

The security landed on the short-sale restricted (SSR) list, though plenty of shorts have already piled on. In fact, short interest grew 11.7% during the past reporting period, and now accounts for more than 29% of Ambarella Inc's total available float. 

TUES sank to a two-year low of $4.86 earlier, and was last seen down 40.6% at $5.50, due to a negative earnings reaction. The equity has now surrendered almost three-quarters of its value in 2015. 

Like AMBA, TUES is on the SSR list. Bearish bets already account for close to 20% of the security's total available float, representing more than three weeks' worth of pent-up buying demand, at Tuesday Morning Corporation's average pace of trading. 

Finally, ETSY is the most modest loser of the three, down 2.6% at $13.88. Unlike Twitter Inc (NYSE:TWTR) and this restaurant name -- and possibly Alibaba Group Holding Ltd (NASDAQ:BABA) --  sub-IPO territory is nothing new for ETSY. However, the stock still has some cushion before exploring all-time lows south of $12.80.


A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earnings guide for Q3 before it's too late!


  
 
Special Offers from Schaeffer's Trading Partners