Technical Summary: The stock of FBU has not been a buy and hold over the last 5 years with the stock swinging wildly between about $5.50 per share and $11.00. The stock is trading closer to $5.50 at the current juncture and appears to be locked in a downtrend for the last year.
It has been a news heavy downtrend for the stock with the price action punctuated by trading halts and nasty gap downs in price. More recently the stock has been subject of take over rumours, this caused a natural pop in the stock to the 50 day moving average where it found resistance and sold back down. The low volume nature of the pop suggests that the market has not taken it all that serious and serious money has not yet bought into the move. It is not surprising therefore, when also considering the wider downtrend for the company that the rumours have been sold into. Ideally we would like to see this move consolidated upon and from a technical standpoint there is no reason to buy unless you were picking a
bottom or buying for valuation reasons.