Yet again, Newpark Resources (NR) beat earnings and the stock is moving towards 52-week highs. We tried this trade back in August after the last earnings beat. In retrospect, the timing was not right as that week ended up being the beginning of the summer sell-off that put us in bear market territory. NR bottomed alongside the markets in October and has been on a relentless rally ever since. Now, we are just under the 52-week high of $10.09 with significantly more accumulation than previous attempts to break it, giving increased odds of a breakout to profit into.
At the time of publication, Kudrna was long NR, but positions may change at any time.
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