Another stock that reversed higher yesterday was NRW Holdings (NWH) which finally closed up +4.5%, we’ve discussed this engineering business a bit earlier after missing a healthy profit opportunity above $3 but after correcting almost 20% we are now comfortable with the risk / reward again at current levels. Some pundits suggested the stock rallied on the back of the successful acquisition of Primero, but we felt this was inevitable although certainly it’s a great strategic $100m deal for NWH.
We obviously remain open-minded but the correction feels over and as we’ve seen with a number of stocks this month when the selling abates in this market recoveries are often sharp and fast.
MM remains long & bullish NWH medium term
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