Make 50% in One Day With This $1 Stock?
You could have made 50% in one day with Party City (NYSE: PRTY) shares a week ago. It was a trend reversal following a massive downturn for the stock.
This obvious pariah of social distancing has seen its shares tank from $8 to $0.26 over the past year.
After all, who’s going to be throwing parties when the end result is possible death from the coronavirus?
Well, conventional wisdom is often wrong…
Just look at the move in casino stocks, airline stocks, hotel stocks and even theme park stocks since the lows in March. Some have doubled and even tripled.
Casinos reopened with bigger-than-expected crowds. Airlines are seeing an increase in bookings. Theme parks are expecting higher attendance than anticipated.
People want to get out!
As for parties, just take a look at shares of the alcohol producers and sellers… They are all on the comeback trail too.
Which leads us to Party City…
Last week, the company announced that it is in talks with creditors to restructure its debt. The shares soared from $1 to $1.52 (getting as high as $1.72 in the premarket) on the news.
They have since pulled back. If Party City can renegotiate its debt, the shares could be off to the races again, this time for real.
The trend in reopening is unmistakable, and it looks like the country will not close again even if the virus pops up. So you may be wondering why anyone would take the risk to hold a party at home.
As I stated above, people are flocking to bars, casinos, pool parties, etc. And soon, movie theaters will be reopening as well. My job is not to pass judgement. It’s to look at a trend, and that trend is telling me that people want their social lives back.
Action Plan: Party City shares currently trading around $1.40 is a speculation, pure and simple. It might be time to add some zing to your portfolio with a stock that can party like it’s 1999 again!
More from Trade of the Day
Why I’m Bullish on Metals Heading into 2025
Nov 26, 2024
“Here’s Why I’m Not Taking December Off”
Nov 26, 2024
Time Sensitive: These Sectors Are About to Surge
Nov 25, 2024