I would pass on this one as a Pincher trade candidate starbuxsux as I prefer my Pincher set-ups to have certain minimum requirements displayed in the primary group of 3 signals:
1) RSI 14 dipping below 30 2) PPO 12/26/9 <= -10 (more flexible w/ this; in some cases it may approach -4) 3) ADX 14 > 40
I also like to characterize a Pincher-- in part -- by a rather sharp decline in a relatively short time-span & UFPI's decline seems too gradual and spread out over a longer time-span.
Lastly, while noting the appealing smaller float size (at just under 20 mill shares), the daily volume characterizes the stock as technically illiquid (with liquidity = daily volume >= 1% of the tradable float), which could create a problem when it came time to close the position.
I do like the potential growth storyline w/ sound back-dropped fundamental indicators, but not as a Pincher.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.