I spent hours every day looking through stock screens searching for companies that I can share with my readers and members that I believe present “profit opportunities”.   I could be looking for a stock to fall or rise.  When I select it, I try to do the underlying research and then do the chart analysis so my readers can make their own decisions.

Today’s stock actually is a little bit scary…..it is in the midst of a prolonged selloff and I can’t quite understand why.  The selling pressure is so high right now that I expect it to bounce in the near term.  Once it finds a bottom (therein lies the challenge).

U.S. Concrete, Inc. (RMIX) has shed over 60% of its stock value since early November.  One share costing$1.90 stock on November 1st can be bought for only $0.74.

Take a look at the chart:

The chart ix painful to look at, but I think that there is an opportunity with RMIX.  Don’t catch the falling knife, but radar this one.  IMHO, the stock will find a bottom soon and then begin adding back value to its shareholders.

RMIX is in a depressed industry (Ready Mix Concrete), has been forced to write-off huge amounts of goodwill for acquisitions it has made previously, has issues with noteholders and banks (liquidity problems and covenant breaches) and faces an uncertain future.  In other words…..they are just like any other company in today’s economy.

I am not trying to trivialize their situation, but I feel that shareholders are overreacting and that could mean an opportunity for traders.  I have searched the news and boards to check and see if RMIX is headed for BK or something dire and can’t come up with anything.  All of the sellers are about out of the stock….time to be a contrarian and take a look at RMIX.

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