SAVA and VALE present interesting opportunities for investors
This week in Cheap Seats: Stocks Under $20 segment, we’re taking a look at two stocks presenting an interesting buying opportunity: Cassava Sciences Inc (NASDAQ:SAVA) and Vale SA (NYSE:VALE).
Cassava Sciences stock is up 2.8% to trade at $19.34 at last check, on track to snap its eight-day losing streak. The equity yesterday hit a familiar floor at the $18 region, which contained a March pullback. So far this year, SAVA shed 13.9%.
A short squeeze could generate tailwinds for the shares. Short interest fell 7.7% over the most recent reporting period, but the 12.80 million shares sold short still make up 28.6% of SAVA’s available float. It would take shorts more than three weeks to buy back their bearish bets, at the stock’s average pace of trading.
VALE was last seen down 1.6% to trade at $11.20, amid news that the mining company will present a new settlement offer over the 2015 Mariana disaster, alongside BHP (BHP) and Samarco. The equity gapped to a roughly four-year low of $11.13 in the previous session, down 29.5% this year.
It’s worth noting that Vale stock’s 14-day relative strength index (RSI) of 13.5 sits firmly in “oversold” territory, however. In other words, VALE could see a short-term bounce on the charts.