Blockchain Deal Sparks Rally for Penny Stock

OTEX reported better-than-expected fiscal second-quarter earnings

Managing Editor
Feb 1, 2018 at 3:06 PM
facebook twitter linkedin


U.S. stocks are mixed this afternoon, as the major equity indexes struggle to start the new month on a positive note. Among the stocks making notable moves today are game developer The9 Limited (NASDAQ:NCTY), medical device concern ReWalk Robotics Ltd. (NASDAQ:RWLK), and software company Open Text Corp. (NASDAQ:OTEX). Here's a closer look at what's moving shares of NCTY, RWLK, and OTEX today.

NCTY Surges Higher on Blockchain Partnership

The9 stock is up 8% at $0.89 at last check, and just off a fresh intraday high of $1.02. The surge higher was prompted by the China-based game developer's new partnership with Singapore's C&I on the development of blockchain technology to distribute solar energy. NCTY is now up 62% from its Jan. 2 low of $0.55, but the stock has retreated from an earlier intraday surge above its 200-day moving average -- which was a formidable layer of resistance during the second half of 2017.

RWLK Gains on German Reimbursement Nod

ReWalk Robotics stock is trading up 4.6% at $1.15 after receiving a nod from Germany's national health insurance agency to reimburse its ReWalk Personal 6.0 System. This was a much-needed lift for the stock, which touched a fresh low of $1.05 during yesterday's trading. As a result, RWLK is pacing for a rare close above its 50-day moving average. Despite the equity's long-term slump, analyst sentiment is bullish, with four out of five carrying "buy" or "strong buy" recommendations.

Open Text Stock Soars After Better-Than-Expected Earnings

Shares of OTEX are soaring, up 15% at $39.53, after the software concern reported better-than-expected fiscal second-quarter earnings last night. In response, brokerage firms issued no fewer than six price-target raises, with the most notable coming from the National Bank of Canada, to $50 from $45. 

Just as analyst sentiment has been bullish in recent weeks -- with four out of five following the stock carrying "strong buy" recommendations -- options traders have been optimistic, as well. OTEX's Schaeffer's put/call open interest ratio (SOIR) of 0.21 is docked below 97% of comparable readings taken in the past year. This low reading suggests that short-term speculators have rarely been more call-skewed toward the stock during the past 12 months.

Grab Your FREE 5 Rules for Trading Stock Trends Report

1606854690

 




 
Special Offers from Schaeffer's Trading Partners