It Looks Like It’s Too Late to Buy This Little-Known Stock Up 180% Since Dec. 8

• Troops (TROO) has surged 179% since a Trend Seeker “Buy” signal was issued on Dec. 8.
• Shares are up nearly 140% over the past 52 weeks.
• Despite the run-up, Morningstar estimates that TROO remains 44% undervalued with a $7.80 fair value.
• However, given low volume and the recent price spike, it appears we have missed the optimal entry point. Be extremely cautious here. 

Author’s Note: Today’s Chart of the Day is a purely technical pick. It is not widely followed and is highly volatile.

Today’s Featured Stock

Valued at $489 million, Troops (TROO) is a conglomerate of various businesses. It is principally engaged in money lending business in Hong Kong providing mortgage loans, property investment to generate additional rental income, and the development, operation, and management of an online financial marketplace which provides one-stop financial technology solutions. The company leverages artificial intelligence, big data, the blockchain, and cloud computing.

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. TROO checks those boxes. Since the Trend Seeker signaled a new “Buy” on Dec. 8, the stock has gained 178.75%.

Barchart Technical Indicators for Troops

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Troops scored a new three-year high of $4.89 on Jan. 8.

• TROO has a Weighted Alpha of +187.32.
• Troops has a 100% “Buy” opinion from Barchart.
• The stock gained 135.39% over the past year.
• TROO has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $4.30 with a 50-day moving average of $1.81.
• Troops made 15 new highs and gained 172.08% in the last month.
• Relative Strength Index (RSI) is at 84.24.
• There’s a technical support level around $3.96.

Don’t Forget the Fundamentals

• $489 million market capitalization.
• The stock is not followed by Wall Street so there are no revenue and earnings projections.

Analyst and Investor Sentiment on Troops

• Wall Street analysts tracked by Barchart are not following this stock.
• Value Line ranks the stock “Average.”
• CFRA’s MarketScope Advisor does not rate this stock.
• Morningstar thinks even with the stock’s recent runup, it’s still 44% undervalued with a Fair Value of $7.80.
• 2,120 investors are monitoring the stock on Seeking Alpha, which does not rate this stock.
• Short interest is just 0.06% of the float.

The Bottom Line on Troops

With the stock’s recent runup and its very small volume, it appears to me that the best entry point for this stock has been passed.

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.