Why Modern Media Acquisition Corp. (MMDM) Stock Plunged Today

Modern Media Acquisition Corp. (NASDAQ:MMDM) is one of the worst performers on the stock market today. At current price of $5.05, the shares have already lost -0.9 points (-15.04% lower) from its previous close of $5.95. Should you buy or avoid them? The stock sets an active trading volume day with a reported 106224 contracts so far this session. MMDM shares had a relatively better volume day versus average trading capacity of 28.58 million shares, but with a 0 million float and a 5.68% run over a week, it’s definitely worth keeping an eye on. MMDM share price has been trading recently between $5.4 and $7.

The shorts are running away from Modern Media Acquisition Corp. (MMDM) stock. The latest set of short interest data was released on 15 August 2019, and the numbers show a drop in short interest in MMDM shares. While short interest still represents only 0% of MMDM’s float, the number of shares shorted have fallen by -4232. The number of shares shorted fell to 19962 shares, down from 24194 shares during the preceding fortnight. With average daily trading volumes at 6107 shares, days to cover decreased to about 4.776703 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Modern Media Acquisition Corp. Announces Intention to Extend Date by Which It Must Consummate Business Combination” and dated September 09, 2019.

During the recent trading session for Modern Media Acquisition Corp. (NASDAQ:MMDM), the company witnessed their stock drop by $-0.46 over a week and tumble down $-5.45 from the price 20 days ago. When compared to their established 52-week high of $13.68, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 06/25/19. The recent low of $4.72 stood for a -63.05% since 09/06/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 0 is also allocated to the stock. Since the beta is less than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for Modern Media Acquisition Corp., the two-week RSI stands at 32.52. This figure suggests that MMDM stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current MMDM readings is similarly very revealing as it has a stochastic reading of 19.44% at this stage. This figure means that MMDM share price today is being overbought.

Technical chart claims that Modern Media Acquisition Corp. (MMDM) would settle between $6.83/share to $7.72/share level. However, if the stock price goes below the $5.23 mark, then the market for Modern Media Acquisition Corp. becomes much weaker. If that happens, the stock price might even plunge as low as $4.52 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.28. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Moving on, MMDM stock price is currently trading at 0X forward 12-month Consensus EPS estimates, and its P/E ratio is NA while for the average stock in the same group, the multiple is NA. Modern Media Acquisition Corp. current P/B ratio of NA means it is trading at a premium against its industry’s NA.