Gediminas Jasionis

Great Lakes Dredge & Dock Corporation (NASDAQ:GLDD) At The Lower Side Of The Price Channel

by Gediminas Jasionis July 16, 2010
Great Lakes Dredge & Dock Corporation (NASDAQ:GLDD) is found at the lower side of the price channel and could be up for a GLDD_chart.pngswing if the market mood is set right.

There is no strong trading volume, indicating bears’ intention to drive the price lower. No bad news were out in the past half a month, so the general sentiment should be optimistic. The company has recently put more power behind their efforts to clean up the Deepwater Horizon mess.

Traders are waiting for a quarterly report, so consolidation is natural, and the price channel could be rather profitable if it’s sticking. The financials should be reported in early August – a considerably short time left and so major price move isn’t likely to happen.

1Great_Lakes1.jpgThe last quarterly report was a mix of improvements and disappointments. Top line results underperformed previous years’, but larger profit was booked on lower expenses and amortization write downs.

The company has not given any guidance about the Q2 2010 results and analysts expect revenues to decline further, with the consensus estimate being $152.5 million for the June quarter. First quarter results brought 60% positive surprise compared to analyst calculation, though due to the nature of low EPS, this number is not as significant as it seems. Q2 2009 held 85.7% positive surprise according to Yahoo.

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