On Friday a big trading volume increase in shares of Town Sports International Holdings Inc. (NASDAQ: CLUB) brought the attention of a lot of small traders looking for the next big stock play. Take a look at this chart and you can see the action Friday and how the stock has rallied off of the 40 cents level. Before the opening bell today it is poised to gap up above 80 cents.
What is going on? Town Sports International Holdings Inc. (NASDAQ: CLUB) is actually a financially troubled company. It operates sports fitness centers that have lost revenue due to the coronavirus shutdowns across the country. The situation has gotten so dire that the company has explored the possibility of filing for bankruptcy and stopped filing required company reports to the SEC. This has brought a delisting warning from the Nasdaq for noncompliance. But traders are seeing the stock rally and taking it as signs of a turnaround buying opportunity. Take a look at these recent tweets.
RT stock_family: $CLUB Get made fun of because people don’t have patience and can’t see that it’s a bottom play hysterical anybody with common sense and see this was going to go 100% – https://t.co/YWb0YTEzG0 #options #stockmarket #daytrader #stocktrading #stockoptions #news #s…
— Towelie (@TowelieTrades) August 17, 2020
$club watching close today, NY allowing gyms to re open, this was $3 pre covid, will likely daytrade only
— Thomas Keough (@tom_keough1) August 17, 2020
RT stock_family: $CLUB Was just a matter of time pic.twitter.com/Y2JzaINGDL – https://t.co/YWb0YTEzG0 #options #stockmarket #daytrader #stocktrading #stockoptions #news #stocks #OptionsTrading $aapl $spy $amd
— Towelie (@TowelieTrades) August 17, 2020
I have no position in this stock and do not plan on trading it. I am eyeing my top stock pick for this month, which is a gold mining stocks, and am going to be interested to see what happens with several mining stocks as a result of the news that Warren Buffett has bought a giant stake in Barrick Gold. I have specific trading setups that I like to use and email people every morning before the open about the top market moving news and what I am watching in the market to members of my free email list. Click here to subscribe to these stock trading updates.
-Mike
