Real Industry, Inc. Shares Shoot Up On Better Than Expected Q1 Earnings

Real Industry, Inc. , a clinical stage biopharmaceutical company yesterday reported their first quarter 2017 financial results. Real reported a first-quarter loss of $11.4 million. Real reported a first quarter earnings per share loss of $0.43 per share. Real reported a first-quarter revenue of $337.1 million.      

Real Industry, Inc. CEO’s  Comments

Mr. Kyle Ross, President and Chief Executive Officer of Real Industry, stated, “We continued to make progress on Real Industry’s long-term strategy of executing M&A opportunities that will diversify our cash flows and create a sustainably profitable enterprise, with a focused effort on leveraging our unique tax assets. We are also continuing efforts to strengthen Real Alloy’s operations in advance of favorable trends in the marketplace. We are pleased that the positive turn in aluminum pricing and scrap spreads that improved throughout the first quarter in North America has continued into the early part of the second quarter and expect Segment Adjusted EBITDA in both of our segments to be further improved into the upcoming quarter.” Business Wire

RELY Technical Analysis

(Click on image to enlarge)

Real Industry Chart

RELY opened trading yesterday at $2.55 which was exactly the same as the previous day’s trading close. RELY closed trading yesterday at $2.45 and spiked up aftermarket to $3.10, equivalent to a 27% increase from the closing price. Taking a look at the daily chart we can see that the last time RELY traded above these levels we have to go back to March 22nd when it traded at $3.20. Penny stocks like RELY can be light on volume so we’ll have to wait and make sure enough volume shows up at the open to make it worthwhile to trade.

Taking a closer look at the daily chart we can see that before the spike up RELY had been in an overall downward trend dating back to August 9th, 2016 when it traded at $8.50. RELY has a float of 26.06 million shares and traded below the normal daily trading volume on Wednesday.

For trading purposes, I would like to see RELY open trading on Thursday above $2.90 and if it does I would be looking to take a long position at the bell with a buy limit order as a market order may get filled with a lot of slippages. My stop loss would be $0.10 from my entry position fearing anything more than that and the stock would start to fill in the gap up.

[Update: Real was acquired by Elah Holdings in 2018 and trades on the pink sheets as ELLH.]