Broadwind Energy: January 15, Market Close Update

Yesterday I wrote about the recent Broadwind Energy sell-off:

“Today’s volume [1,058.793] was significantly higher than normal and the stock closed at $6.37 near the lows of the day, both indicating the potential for further selling tomorrow.”

In fact Broadwind shares fell by $0.50 to $5.87 today after the company priced an offering of 15 million shares of its common stock at $5.75 a share. Volume was a huge 8,118,694 shares, compared to the 50-day average daily volume of 262,000. The stock has now sold lower for 6 consecutive trading sessions and has sold off $4.05 in just 15 trading days, which certainly suggests a greatly oversold scenario. Now that it appears that all relevant press releases have been issued I expect the stock to enter a period of consolidation in the $5.60 to $6.00 range before retracing these recent losses back to the $8.00 level.