Long
Frontier communications(FTR) nearing important support
Updated
Technically Speaking
Price is coming up on the support zone b/w 3-4.
The R/R seems to favor a long position at these levels.
A good target would be the 2015 high print around 8.50.
Risk
For me, I always think about risk, not as volatility, but the probability of a permanent loss of capital. You can never know for sure what the probability is but I think most people can come to a conclusion about what is most likely.
Two links to get an idea of the companies troubles:
1. seekingalpha.com/article/4011168-bad-news-keeps-coming-frontier-following-10_5-billion-purchase-verizon
2. fool.com/investing/2016/10/05/frontier-communications-corporations-biggest-failu.aspx
What to do?
How much of your portfolio are you willing to risk to see if this trade will play out in your favor? 1%, 2%, 5%? Only you can answer that questions.
Price is coming up on the support zone b/w 3-4.
The R/R seems to favor a long position at these levels.
A good target would be the 2015 high print around 8.50.
Risk
For me, I always think about risk, not as volatility, but the probability of a permanent loss of capital. You can never know for sure what the probability is but I think most people can come to a conclusion about what is most likely.
Two links to get an idea of the companies troubles:
1. seekingalpha.com/article/4011168-bad-news-keeps-coming-frontier-following-10_5-billion-purchase-verizon
2. fool.com/investing/2016/10/05/frontier-communications-corporations-biggest-failu.aspx
What to do?
How much of your portfolio are you willing to risk to see if this trade will play out in your favor? 1%, 2%, 5%? Only you can answer that questions.
Note
For fundamental analysis check out FTR's SA https://page-http://seekingalpha.com/symbol/FTR
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