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OceanFreight is a profitable company and the current ratios (Price/Sale, peg, book, PE) are all very low. I think there is no much space to go much lower from here. OCNF has a very low price to earnings ratio of 1.20 based on a average of 3 fiscal years. It has a book value of $3.45 a share, and is trading at only 0.3x book at $1.02. The stock is currently trading at only 0.7 x sales. Technically, the chart above shows weakness as the stock is trading below major moving averages. MACD is below 0 showing the stock is in a bearish mode. The only possible indicator is KD where K line seems to be ready to rise above D line which could mean rebound. The volume is also decreasing, which means the trend is unlikely to continue and the decline in prices will slow down. Stay tuned on OceanFreight.
( click to enlarge )THQI’s chart is showing a bullish MACD divergence. Positive divergence occurs when MACD advances upwards at a time when the price is still in a downtrend. MACD forms a sequence of higher lows. A close above today’s high will cause an inversion which will lead the stock higher. In addition, the stock is extremely oversold at this point that the conditions are almost perfect for another large scale counter trend rally to develop, so don’t be caught if you see this one begin. In addition, there is a lack of volume in this downward move, which tells me to be more skeptical than trusting in this move.
