Feb. 19, 2010 (Chinavestor) One has to wonder if Yaucheng Technologies (NASDAQ:YTEC) is ripe for bottom fishing after the -46.28% drop in January 29, 2010 following earnings release. The stock continued to show weakness and hit bottom at $3.12 on February 9, 2010.
Investors have to remember that earnings, e.g. profits, are driving stock prices above all. Investors like companies that deliver constant revenue and earnings growth. The company scores low on this if you take at look at Yucheng Technologies (NASDAQ:YTEC) from this angle. Revenue and earnings have been erratic at best with a very discouraging trend. This implies Yucheng Tech. (NASDAQ:YTEC) is not ready for bottom fishing yet. We regard current rally from February lows as a dead-cat-bounce.
If you like us, spread the word to the fellow investors on your favorite Social Bookmarking websites
