The Bowser Report – Daily Mover Alert April 6

Yesterday, The Bowser Report issued a daily mover alert on The Female Health Company (FHCO) and Direct Insite Corp. (DIRI), both of which fell over 10 percent for the day.

FHCO saw a huge selloff today on the third highest volume day within the past year. The stock has been in a downward trend since March 11 and had a $1.16 drop from it’s pre-market high today. The selloff was likely attributed to the lack of details in the PR and the fact that the merging company is private. Most mergers with a private company result in either a reverse merger proposal, which would likely be favored by shareholders, or the company going private altogether. Investors sold today to save themselves from trouble just in case the company goes private, resulting in a dollar value per share being placed on FHCO. Typically, the dollar value is higher than the current share price. However, due to the book value of $1.20, the potential dollar value that could be paid out to shareholders could be much lower than yesterday’s closing share price of $1.70 prior to the press release.

FHCO has a Bowser Rating of 11, and is still under $3 per share. For those of you who still have a position, you should have exited at $2.70 if you stuck to the gameplan that we reiterated in the alert sent out on March 15. FHCO is still above the recommended price of $1.24 but is out of play until we have a follow-up interview with management or the company provides more specifics on the proposed merger.

DIRI dipped 13% today on a very low volume selloff. This was not a very meaningful move due to the low volume.

DIRI’s Bowser Rating remains unchanged since the last daily alert from last Thursday. DIRI’s current Bowser Rating is at 8 and is lagging due to the recent decrease in sales and lack of an impressive long-term earnings trend. You may consider entering a position, but know that this is a speculative stock that is subject to huge swings in share price.

Both of these stocks took a relatively large hit today, but DIRI’s move was not very important because only 130 shares were traded. FHCO is out of play until more details about the proposed merger are released. We are still anticipating a bullish move from DIRI following the large buy volume last week and promising earnings.

To learn more about The Bowser Report, visit https://thebowserreport.com

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