By all accounts, DragonWave (TSX:DRWI)(NASDAQ:DRWI) was looking pretty rough coming into Tuesday's opening bell. If there was a saving grace it was perhaps the forming of a technical support level for the provider of high-capacity packet microwave solutions for next-generation IP networks.
After hitting an all-time low of $1.22 last Thursday, shares closed above $1.25 on that and each of the two subsequent days, even closing modestly ahead on Friday and Monday. Yesterday, shares closed at $1.30 after opening at $1.29. Holding the base is what technicians refer to as a "support level," a point at which sellers seem to back down and buyers emerge.
With no news released, shares of DRWI are the best on the TSX on Tuesday, gaining 21 cents to $1.51 with about 20 minutes to go in the session after surging as high as $1.80 in early trading.
In its last announcement on May 4, DragonWave said it will release results for the Q4 and the full fiscal year 2017 on May 26th. Other than that, the company has been quiet since April 21 when it said it received a letter from Nasdaq about failing to regain compliance to the listing rule requiring at least $2.5 million in shareholders' equity. DRWI was slated to be delisted from the Nasdaq at the start of May unless it requested a hearing before a Nasdaq listing qualifications panel, which it did, affording them another 180 days from April 20, 2017 to regain compliance.
Whether investors are just banking on a technical bottom, a good quarterly report or that the company will regain compliance is anyone's guess, but the stock is rolling ahead today.
