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Investors look to Lighten Up on Shares of STR Holdings, Shares Down 99.9% (STRI)

By Amy Schwartz

STR Holdings (NASDAQ:STRI) is one of today's worst performing low-priced stocks, down 99.9% to $2.36 on 2.3x average daily volume. Thus far today, STR Holdings has traded 649,000 shares, vs. average volume of 288,000 shares per day. The stock has underperformed the Dow (-23.9% to the Dow's 0.4%) and underperformed the S&P 500 (-23.9% to the S&P's -0.1%) during today's trading.

In the past 52 weeks, STR Holdings share prices have been bracketed by a low of $1.93 and a high of $11.49 and are now at $2.36, 22% above that low price. Over the last five market days, the 200-day moving average (MA) has gone down 0.5% while the 50-day MA has advanced 1.8%.

STR Holdings Inc. manufactures solar power modules encapsulants. Encapsulants are extruded sheets and film which hold the solar module together and protect the semiconductor circuit of a solar panel. The Company also offers inspection, testing and audit services to assure that consumer products meet safety, regulatory, quality, and performance and social standards.

Potential upside of 61.4% exists for STR Holdings, based on a current level of $2.36 and analysts' average consensus price target of $3.81. The stock should run into initial resistance at its 50-day moving average (MA) of $2.46 and subsequent resistance at its 200-day MA of $3.29.

SmarTrend recommended that subscribers consider buying shares of STR Holdings on December 17th, 2012 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $2.70. Since that recommendation, shares of STR Holdings have risen 14.8%. We continue to monitor STRI for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: penny stocks str holdings

Ticker(s): STRI