ShoreTel, Inc. (SHOR), a business communication solutions company yesterday reported their fiscal third quarter financial results. ShoreTel reported a loss of $2.9 million for the third quarter.
ShoreTel reported third quarter adjusted earnings of $0.01 per share with revenues of $87.7 million which beat analyst expectations of $84.5 million.
ShoreTel, Inc. CEO’s Comments
“Total revenue, profitability and cash flow from operations showed improvements on a year over year comparison. We have implemented and will continue to identify actions to further improve the company’s growth,” said Don Joos, president and CEO of ShoreTel. “The board’s Strategic Advisory Committee continues to evaluate alternatives to increase shareholder value.” PR Newswire
SHOR Technical Analysis
ShoreTel Chart
SHOR opened trading yesterday at $6.00 which was down from the previous day’s trading close of $6.05. SHOR closed trading yesterday at $6.05 and spiked up after market to $6.75, equivalent to a 8% increase from the closing price. Taking a look at the daily chart we can see that the last time SHOR traded above these levels we have to go back to the week of February 27th when it traded at $6.75. The price of this stock is in line with my penny stocks trading strategy and could provide plenty of upside should buyers step at the open.
Taking a closer look at the daily chart we can see that before the spike up SHOR had been in an overall downward trend dating back to January 25th when it traded at $7.50. SHOR has a float of 55.97 million shares and traded 1.14 times the normal daily trading volume on Wednesday.
For day trading purposes, I would like to see SHOR open trading on Thursday above $6.50 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.15 from my entry position fearing anything more than that and the stock would start to fill in the gap up.
