Diana Containerships Inc. (NASDAQ:DCIX) Oversold but Is That a Buy Indicator?

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Diana Containerships Inc. (NASDAQ:DCIX) has reached an oversold level with an RSI(14) at 9.63.

The Relative Strength Index (RSI) is a very common technical indicator used to ascertain strengthening and weakening momentum in stock price. RSI levels 70 and above are considered overbought while an RSI of under 30 is considered oversold. Oversold is a technical condition that occurs when prices are considered too low and the probability of an upturn is higher.

Volatility

Diana Containerships Inc.’s stock has a beta of 2.28 meaning it is more volatile than the market overall which by definition has a beta of 1. Stocks with beta’s lower than 1 are considered to be less risky than the market while those with a higher beta may be more risky than the market.

The stock’s Average True Range (ATR) is sitting at 0.27. The ATR is a measure of volatility. A high or low ATR doesn’t tell you which way a stock will move but is a signal that it is likely to move.

It is currently trading at $0.47 impressively lower than $1.75, the stock’s 50 day moving average and quite a bit below the 200 day moving average of $161.62. The 50 day moving average went down $-1.28 or -73.235% and the 200 day average moved down $-161.15.

Short Interest

Investors are feeling more bearish recently if you pay attention to the change in short interest. The company realized a rise in short interest between August 15, 2017 and August 31, 2017 of 129.87%. Short interest increased 110,982 over that timeframe. Days to cover decreased from 0.0 to 0.0 and the short interest percentage is 4.27% as of August 31. As of the last earnings report the EPS was $-3,023.64 and is estimated to be $-949.62 for the current year with 46,000 shares now outstanding. Analysts expect next quarter’s EPS will be $-226.38 and the next full year EPS is projected to be $-449.82.

Company Information

Diana Containerships Inc., launched on January 7, 2010, is a holding company. The Company, through its subsidiaries, is involved in the ownership of containerships. As of December 31, 2016, the Business’s fleet consisted of six panamax and six post-panamax containerships with a combined carrying capacity of 61,517 twenty-foot equivalent unit (TEU). As of December 31, 2016, the Business’s fleet included SAGITTA, CENTAURUS, NEW JERSEY, PAMINA, DOMINGO, DOUKATO, PUELO, PUCON, MARCH, GREAT and HAMBURG..