All major indices were down today with Down down 30 points while S&P 500 was down 0.42% and Nasdaq closed down 0.57%. The Great Atlantic & Pacific Tea Company (GAP) yet reversed the down trend and shoot up almost 25% to $3.37 per share.
The stock was well off its 52 weeks high of $13 back in January and dropped to 52 weeks low of $2.5 last Friday on disappointing earnings. The buyers have looked past all the bad news of the company and probably anticipated possible turn-around from new top management.
Despite a terrible quarter, don't forget this is still a large grocery chain with 429 stores in Northeast generating revenue of $2.54 billion. With the economy gradually stabilizing as the revenue and net loss show improvement compared with past two quarters, last Friday's low of $2.5 probably could be the bottom of the stock. The only thing to watch would be the balance sheet where the company has negative equity.