Hi Jay. Sorry, but I cannot explain today's price behaviour (though I am certainly not complaining!). I could not find any news, and from a technical point of view, Dorel started to give buy signals about a month ago. Since the volume is still fairly modest, I would tend to agree with you that it is unlikely to be a significant news item moving the stock. The one problem with a stock like Dorel is that, because the daily volume is so small, it does not take much for the stock price to move significantly.
On the other hand, the stock price has closed at its high for three consecutive trading days, and today opened $1.00 above Friday's close. These two facts make me hopeful that Dorel will also perform well over the next couple of days. My best guess is that there may be some investors out there who recognized that Dorel has been undervalued for a few months, but felt no particular urgency to buy the shares, since they were underperforming. It is possible that now that the stock price is starting to move, all of those people sitting on the sidelines believe that Dorel's share price is finally waking up, and they have decided to jump in, and catch the upswing.
This is only my guess, so I could be completely wrong. However, from a technical perspective, the stock looks good, so I believe that whatever is driving it will continued to do so over at least the next couple of days. Let's keep our fingers crossed!
Hassan |
